First-time homebuyers shrink as prices spike
Home sales cooled as prices continued to heat up in August.
Driving the news: The share of first-time existing homebuyers (29%) last month was the smallest in two years, according to new data from the National Association of Realtors.
- Since January 2011, the average share from new buyers has been 31%.
Why it matters: Fewer new buyers are opting into America's competitive housing market that’s pushed prices to historic levels, economists say.
- "A number of potential buyers have merely paused their search, but their desire and need for a home remain," NAR's Lawrence Yun said in a statement.
What's happening: The median price of an existing home sold last month hit $356,700, though the pace of rising prices is slowing.
- August marked the 114th month of straight year-over-year gains at 14.9%, down from almost 18% last month.