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Existing homeowners, not first-time buyers, responsible for recent U.S. housing market gains

Posted by: Leslie Black-Plumeau on 9/11/2013

National data indicates a possible slowdown in the pace of household growth which affects home prices and construction levels, according to the Harvard Joint Center for Housing Studies.  

“Recent gains in home prices and single family home construction have been driven more by a restricted supply of homes for sale amid demand from existing owners rather than by growth in first-time homebuyers,” the Center’s report explained. 

Vermont home sales during the first six months of 2013 were up four percent in terms of volume and five percent in terms of median sales price, according to the Vermont Housing Data website.  To the extent that the state reflects national trends, it is likely that this growth was due primarily to pent up demand from existing owners rather than to new households buying homes.