Market Survey: First-Time Buyers Still an Important Part of the Mid-Atlantic Housing Market

Buyers have been challenged by the lack of inventory and deteriorating affordability in recent years. One group particularly affected by these factors are first-time buyers, who are likely to have tighter budgets, more difficulty saving for a down payment, and fewer home options. However, first-time homebuyers are still active in the Mid-Atlantic housing market, accounting for a larger share of market activity than in other parts of the country, according to the results from the latest Bright MLS subscriber survey.
 

 

In 2024, first-time buyers accounted for just 24% of home sales, the lowest share since the National Association of REALTORS® began collecting data. In the Mid-Atlantic region, roughly two in five buyers are first-time buyers.

Most First-Time Buyers Use Savings for Their Down Payment, But Family Assistance Is Important

In the Mid-Atlantic, the most common source of funding for a down payment is savings. About two-thirds (66.5%) of first-time buyers and 50.2% of repeat buyers used savings for their down payment in October 2024.
 

 

First-time buyers can’t dip into equity from a previous home (19.5% of repeat buyers did), yet they receive help from other sources more frequently than repeat buyers. According to the latest survey, 17.4% of first-time homebuyers received a gift from family or friends for their down payment, which is double the share of repeat buyers (8.4%).

Government programs at the local, state, and federal levels also are more commonly used by first-time buyers. For those who purchased in October, roughly 12% received down-payment help from a program compared to less than 1% of repeat buyers.

New Year Looks Promising According to Real Estate Professionals

Agents and brokers are optimistic about buyer activity in the coming months. The Bright MLS buyer and seller indices assess market sentiment by comparing the number of agents and brokers who anticipate high to very high activity to the number expecting low to very low activity. A reading above 50 is generally optimistic, and the index for November was 56.8, increasing from October and nearly 15 points higher than November 2023.
 

 

At 44.4 in November, the seller index had a slight increase from last month and remained over 20 points higher than a year ago. The seller index hasn’t indicated optimism since the questions started in April 2023, but it has risen consistently in 2024.

The holidays dampen some activity, though the final quarter should be more active than last year. However, economic and political uncertainty may cause some buyers and sellers to wait until the new year. First-time buyers, repeat buyers, and sellers could see and seize more opportunities if mortgage rates ease in 2025.

About Bright

Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100k real estate professionals, enabling their delivery on the promise of home to over half a million homebuyers and sellers monthly. In 2023, Bright subscribers facilitated $104B in real estate transactions through the company’s platform.

A total of 581 agents representing recent homebuyers and 689 agents representing recent home sellers responded to Bright MLS’s survey. The survey was conducted between November 6 and November 13, 2024. Full survey results are available here. More research and analysis on the housing market is available from Bright Research.