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First Time Homebuyers Made Up Almost 50% of Purchases in 2009

By
Mortgage and Lending with American Capital Corporation

The National Association of Realtors released figures this week indicating that first time homebuyers made up 47% of all purchases in 2009. With the extensions to the homebuyer tax credit and still historically low mortgage rates, first time buyers took advantage of the benefits and raised the first time homebuyer share of home purchases 6%, from 41% in 2008.

Additional figures provided by the report indicated that single women made up 25% of all first time homebuyers, with men making up 12% of all buyers. Married couples made up 49% of first time buyer purchases and unmarried couples made up the remaining 12% of buyers.

The report also showed that single women made up 17% of the repeat homebuyer market, with single men making up 8%. Married couples made up 69% of all repeat buyers, and unmarried couples were the remaining 5%.

Another interesting fact the report showed was that the biggest growth in first time buyer rates was in the Western United States with a 10% increased, followed by the South and Midwest.

John Souerbry
Cordon Real Estate - Fairfield, CA
Homes, Land & Investments

Christine, I agree with your numbers, but they should be foot-noted with the definition of "first time buyer."  It's very misleading.  As you know, the California credit is available to those who have not owned a home in 2 years (but may have owned one prior!) and for purchases of new construction (houses that have never been occupied prior).  A logical definition of "first time anything" would be something that has never happened before... ever.  I'd like to see how many first time buyers are people who have owned homes before versus the number of buyers entering the market for the first time.

May 12, 2010 11:06 AM
Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

It will be interesting to see where our next wave of buyers comes from??

May 12, 2010 06:46 PM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

I agree Jim. As John said California now has its own homebuyer tax credit that applies to buyers of newly constructed homes as well, possibly other states will follow suit if they see their home sales dip drastically because of the absence of the national tax break.

May 13, 2010 10:43 AM