Home Buyers and Home Sellers - Who Were They In Years

First time home buyers had the highest market share on record (since 1981) according to a survey by the National Association of Realtors® (NAR). The NAR surveys buying and selling of house across the nation each year, and the results of their survey were released in November 2009 and cover the period from June 2008 through July of 2009.

The first time home buyer made up 47% of all buyers, up from an average of 40 to 41% over the previous 10 years. The previous high was 44% in 1991, also at the peak of the previous significant downturn in real estate.
The fact that first time home buyers made up a significant portion of home buyers this time around isn't surprising given these two factors:
  • Homes became more affordable as prices dropped across the nation
  • The first time home buyer tax credit of up to $8,000 became available
So what is the profile of this first time home buyer? According to the NAR survey:
  • Their median age was 30
  • Their median income was $61,600
  • The homes they purchased cost $156,000
  • 55% financed their home with an FHA loan
  • 96% chose a fixed rate mortgage
  • 61% used their savings for the downpayment; 22% received a gift from a friend or a relative
Also, according to this survey, are some interesting statistics of the typical buyer and buying process, whether first time or repeat:

The Buying Process:
  • Buyers started their home search process online and then contacted a real estate agent
  • 90% of buyers used the Internet; 87% said they relied on real estate agents
  • Buyers searched a median of 12 weeks before they found their dream home
  • They viewed 12 homes before purchasing the one they wanted
The Typical Buyer:
  • 66% are married couples
  • 21% are single woman; 10% are single men
  • 8% are unmarried couples and 1% are "other"
  • 15% are non-white and 9% were born outside of the U.S.
  • The repeat buyer was typically 48 years old with a median income of $88,100 purchasing a home costing $224,500
  • 87% see their home as a good investment and more than half see it as a better investment than stocks
What did they buy and how did they buy it?
  • 78% bought a detached single family home
  • 54% of the homes were in a suburb or subdivision; 18% were in an urban area
  • The typical home size was 1800 square feet
  • The median distance from their prior home was 12 miles
  • The median downpayment was 8%
  • 8% paid all cash for their home
The survey also covered the typical home seller:
  • Their median age was 46 and their income was $91,100
  • They had been in their home for 7 years
  • They moved a median distance of 19 miles
  • Their home was on the market for 10 weeks
  • Nearly half traded up, 30% bought a comparable home, and 22% traded down
  • 85% used a buying and selling of house on real estate professional
  • 42% used incentives to attract buyers, such as paying for closing costs or providing a home warranty
  • The home sold for 95% of list price
  • The home sold for a median increase of $36,000 over the seller's original purchase price


 

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