First Time Homebuyers are Big Buyers in Q1

Half of all home sales in the first quarter involved first-time homebuyers and the National Association of Realtors expects more new buyers will be entering the market to take advantage of low prices and distressed property sales. "Close to 455,000 buyers purchased their first home during the first quarter, and those are likely just the first wave of new buyers coming into the market," NAR chief economist Lawrence Yun said. "Housing affordability conditions are at record levels and we expect a measurable increase in home sales in the second half of this year, which would help stabilize prices in most areas," he said. An NAR survey also found that half of all sales in the first quarter involved foreclosed properties and short sales, which continue to put downward pressure on prices. At NAR's Washington conference, some Realtors noted that first time buyers are competing with investors for foreclosed properties.