Nov. 9, 2008 - Survey Shows Rise in First-Time Buyers

2008 NAR Profile of Home Buyers

1. The number of first-time buyers rose 5% from 2006. Lawrence Yun, NAR chief economist said, “Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent data show a stronger uptrend in first-time buyers who are helping to reduce excess inventory.”
2. The median age of first-time buyers went down a year from 31 to 30 years over 12 months.
3. The median first-time buyer income was $60,600.
4. The national average price of the first-time buyer purchase was $165,000.
5. First-time buyers plan to stay in the home for 10 years, up from 7 years in 2007.
6. The median downpayment by first-time buyers was 4%, up from 2% in 2007.
7. Zero down purchases fell from 45% in 2007 to 34% in the current survey.
8. First-time buyers that made a down payment, 69% used savings, 26% received a gift (usually from parents), 7% received a loan from a relative or friend, and 16% tapped into a 401(k) fund, stocks or bonds.
9. First-time buyers chose a fixed-rate mortgage 92% of the time.
10. Home buyers used a variety of resources in searching for a home: 87 percent used the Internet, 85 percent used a real estate agent, 62 percent yard signs, 48 percent attended open houses and 47 percent looked at print or newspaper ads.

Source: National Association of Realtors

Nov. 9, 2008 - RE: Survey Shows Rise in First-Time Buyers

I'm not surprised the financing has all changed - given the current "credit crunch" - but I'm surprised first time buyers are getting younger.  Are you?

Where, however, can you get a HOUSE for $165,000 these days?  Anywhere in Jersey?  ;-)

Was in your neck of the woods today - Basking Ridge and Bridgewater.  If it hadn't been a Sunday, I'd have called you for a coffee!!  Hope you had a sale or two...

Juliet

Nov. 10, 2008 - RE: Survey Shows Rise in First-Time Buyers

Hi Juliet,

Actually, I'm not surprised that first time buyers are getting younger; particularly in northern/central NJ. The location is so commutable to NYC were salaries are generally higher than other areas of the country. See: http://tinyurl.com/6mylxy.  And yes, you can still purcase a home in NJ for under $165,000.  Homes are generally smaller/older homes in well established neighborhoods.  Here is an example of  one sold last month, right here in Franklin Township: http://tinyurl.com/5dn8w2.  Other local options for first time buyers are condos and townhomes, with prices under $300,000.