According to a new profile by the National Association of Realtors, the share of home sales to first-time buyers fell one percent over last year to 34 percent in 2017.
The drop in share has been attributed in part to student loan debt, impacting 41 percent of the survey's respondents. More than half of the homebuyers surveyed owed at least $25,000 in student loans, with the average amount of debt rising this year to $29,000 from $26,000 in 2016. CNBC reports that many of those surveyed said debt delayed their saving for a down payment.
Higher prices meant first-time buyers had a higher household income ($75,000) than a year ago ($72,000) and purchased a slightly smaller home (1,640-square-feet vs. 1,650-square-feet in 2016) that was more expensive ($190,000, compared with $182,500 in 2016). In other words, they got less for more money. For all buyers, 42 percent paid list price or higher for their home, which is up from 40 percent a year, and at a new survey high.
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