First-Time Buyers Share Of Market Shrinks

National existing-home sales were down last month, and now we’re getting a better look at just who were the lucky buyers.

Amid rising mortgage rates and home prices, the first-time buyers share of the market continued to shrink, with just 27 percent of sales in May coming from newbies. That’s down from 28 percent in April and down from 31 percent in May 2021. 

According to the National Association of Realtors, all-cash sales accounted for 25 percent of transactions in May, down from 26 percent in April but up from 23 percent in May 2021.

Investors or second-home buyers, who make up many cash sales, purchased 16 percent of homes in May, down from 17 percent in both April 2022 and in May 2021. Distressed sales5—foreclosures and short sales—represented less than 1 percent of sales in May, essentially unchanged from April 2022 and May 2021.

For a full breakdown on May sales, click here.