A new report released by Genworth Mortgage Insurance revealed 2018 to be the best purchase year for first-time homebuyers since 2006. The report was led by Genworth chief economist, Tian Liu and featured data from both the fourth quarter and full year for 2018.
"First-time homebuyers accounted for 39 percent of single-family homes sold in 2018, up from 31 percent in 2014; 56 percent of new purchase loans in 2018, up from 52 percent in 2014; Highest level of first-time homebuyer mix in the housing market since 2000," according to the report.
First-time homebuyers also accounted for 99 percent of the growth in home sales between 2014 and 2018. A demographic shift is occurring as first-time homebuyers move out of states like California, Illinois, Massachusetts, Michigan, Louisiana, New York and Texas, and into states such as Arizona, Florida, Georgia, Delaware, Idaho and Nevada
"The first-time homebuyer market once again outperformed the broader housing market, recording its best purchase year since 2006 and regaining its pre-Housing Crisis level," said Liu, according to a recent release.
"At the same time, first-time homebuyers are not immune to declining affordability, as their number declined nationally and in 35 states in Q4. First-time homebuyers responded to declining affordability by taking a wait-and-see approach and opportunistically looking for lower-priced properties."
To learn more about how first-time homebuyers dominate the market in 2018, click on the image above.