Existing Home Owners Move in on Market
Existing home owners are taking a bigger share of the housing market while investors—who have been the powerhouse until late—are slowly retreating.
“A sustainable housing market typically includes a more balanced share of first-timers, move-up buyers and investors, and that's how the housing recovery is beginning to shake out,” Realty Times reports.
Taking the lead: Current home owners—whether move-up, move-down, or move-over buyers—accounted for nearly 45 percent of the market share in home sales in June, up from 43.8 percent in May, reports the Campbell/Inside Mortgage Finance HousingPulse. Recent home price gains and the return of equity is prompting more to make the move, particularly as concerns rise that mortgage rates may soon cut into housing affordability.
Meanwhile, first-time home buyers are still being held back, with a slight drop in their market share from 36 percent in May to 35.7 percent in June, according to HousingPulse. Rising housing costs and mortgage rates as well as toughening up of lending standards have continued to shut out some first-timers.
The investor share in home purchases dropped to 19.7 percent in June from 23.1 percent share in February. It’s the lowest level recorded since September 2012, HousingPulse reports. Rising home prices and fewer distressed homes are prompting more investors to pull out of the market, which they had been dominating up until recently.