Yes, I think that first time home owners have the biggest effect on the housing market because first time home owners are the ones who might be purchasing homes more in the future so they will give them a lot of assistance and also they are looking for the best for their first house.
When the financial markets took a hit in 2008 thanks to some terrible business practices of banks, the housing market crashed. It is slowly, but finally recovering. The landscape has changed though. Many younger families are renting. The first time home owners decide the strength and demand of the housing market.
While home owners definitely help support the housing market, it is becoming more and more transparent that brokers and individuals who make money owning multiple properties are effecting the housing market. Having more influence than just an owner of one home, the people who own many properties have a bigger say in the market.
No I do not think that first time home owners have the biggest effect on the housing market. Many people have owned homes and finally have decided to either build their dream home or to find a dream home. People might not stick with the first house that they ever bought.