More first-time buyers enter
The improving housing outlook is encouraging first-time homebuyers to make a comeback.
The number of first-timers in the market increased from 27% in May 2014 to 32% in May 2015, according to an NAR report.
First-time buyers "have been participating, but at a very low share of the total housing market," Crowe says, "and there are signs that they are beginning to return in greater volume."
In a separate survey, the Campbell/Inside Mortgage Finance HousingPulse found that first-time buyers made up nearly 40% of May 2015 home purchases.
Mortgage insurance premiums for Federal Housing Administration loans have been reduced and lenders are introducing mortgages with lower down payment requirements, so we should see even more newbie homeowners this summer, says Lawrence Yun, chief economist and vice president of research for NAR.