We learned yesterday that July saw a small uptick in national home sales, and now we’re getting a better look at who is buying what in today’s market.
According to the July monthly sales report from the National Association of Realtors, first-time buyers accounted for 30 percent of sales last month, down from 31 percent in June and down from 34 percent in July 2020.
With ever-present bidding wars happening from coast to coast, many first-time buyers continue to get priced out of sales. However, the data shows that first-timers’ June and July 2021 numbers are on track with the 2020 annual share of first-time homebuyers, which closed the year at 31 percent.
Individual investors or second-home buyers, who account for many cash sales, purchased 15 percent of homes in July. That’s a slight increase from June 2021, when investors made up 14 percent of sales, and on par with July 2020.
All-cash sales accounted for 23 percent of transactions in July, even with June and up from 16 percent in July 2020.
With COVID financial protections and the eviction moratorium still in place, it’s no surprise that distressed sales, which include foreclosures and short sales, represented less than 1 percent of sales in July, equal to the percentage seen a month prior and equal to July 2020.
Regardless of who is buying, homes continue to move quickly! Properties on average remained on the market for 17 days in July, unchanged from June and down from 22 days in July 2020. Eighty-nine percent of homes sold in July 2021 were on the market for less than a month.