FIRST Time Home Buyers
"...Sales of new and existing homes this year probably will gain 5.4 percent to 5.7 million after
falling 2.7 percent in 2014, according to Fannie Mae’s Duncan. Lending for home purchases
probably will grow to $714 billion from $672 billion last year, he said.
Household formation, a key measure of real estate demand, will rise to 1.1 million in 2015, the highest
in three years, according to a forecast by IHS Global Insight Inc. First-time buyers accounted for
about 29 percent of home purchases last year, according to data through November from the
National Association of Realtors.
“If the first-time buyers aren’t in the market, the sellers can’t move up and buy their next houses,”
said Bill Banfield, vice president of Quicken Loans Inc. in Detroit, the third-largest U.S. lender.
“The real estate market needs an increase in entry-level demand” for it to be fully functioning, he said.