According to a recent report by the National Association of Realtors, the percentage of homes bought by first-time home-buyers is at it’s lowest level in nearly 30 years. Currently 33 percent of homes purchased are by first-time buyers down from 38 percent in 2013 and significantly below the long-term average of 40 percent.
The reasons cited include higher prices, lower inventory, tighter lending policies, and a still uncertain job market. However, Federal regulators have begun easing the lending procedures somewhat in an effort to encourage more first-time buyers to enter the market. Even at that the National Association of Realtors is predicting home sales will decrease in 2014 for the first time since 2010.