It is a fact that the majority of homes sold in USA in 2009 was to First Time Home Buyers! Infact 47% of the homes sold nationwide were to first time home buyers!
I came across an article by the National Association Of Realtors. They did a survey and here are some facts I obtained from The 2009 National Association of Realtors Profile of Home Buyer and Sellers.
Here are parts of that Survey which I thought were most interesting.
Home Buyers:
The number of first-time home buyers rose to 47 percent of all home sales from 41 percent of transactions in last year's study, and was the highest on record dating back to 1981.
The profile shows the median age of first-time buyers was 30 and the median income was $61,600.
The typical first-time buyer purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.
55 percent of entry level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.
First-time buyers who made a down payment used a variety of sources: 61 percent used saving and 22 percent received a gift from a friend or relative, typically from their parents. 6 percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. 96 percent chose a fixed-rate mortgage.
First-Time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.
Only 12 percent said financing their first home was more difficult than expected, but 13 percent of successful buyers said they had experienced a purchase agreement that was canceled, terminated or fell through; and 8 percent had been rejected by a lender.
Buyers searched a median of 12 weeks and viewed 12 homes.
63 percent selected a buyer's representative.
87 percent consider their home a good investment, and more than half see it as a better investment than stocks.
The typical repeat buyer was 48 years old, earned $88,100, purchased a home costing $224,500 and plans to stay in that home for 12 years.
The median down payment of all home buyers was 8 percent, and the number purchasing with no money down fell from 23 percent in 2008 to 15 percent in the current survey; 8 percent of buyers paid all cash for their home.
Home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. The most commonly cited benefits of using an agent are helping buyers understand the process, pointing out unnoticed features or faults, negotiating better contract terms, and providing a better list of service providers.
Buyers use a wide variety of resources in searching for a home: 90 percent use the internet, 87 percent rely on real estate agents, 59 percent yard signs, 46 percent attend open houses and 40 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online then contact an agent.
When asked where they first learned about the home purchased, 36 percent of buyers said a real estate agent; 36 percent the internet; 12 percent from yard signs; 6 percent from a friend, neighbor or relative.
Local metropolitan multiple listing service Web sites were the popular Internet resource, used by 60 percent of buyers.
60 percent of buyers are married couples, 21 percent are single women, 10 percent single men, 8 percent unmarried couples and 1 percent other.
78 percent of all respondents purchased a detached single-family home. 72 percent desired energy efficient appliances and, and 69 percent wanted energy efficient lighting
54 percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 10 percent in a rural area and 1 percent in a resort or recreation area.
The biggest factors influencing neighborhood choice were quality of the neighborhood, cited by 64 percent of respondents.
Home Sellers:
The median age of home sellers was 46 and their income was $91,100. Typical sellers had been in their home for 7 years, up from 6 years in the 2008 survey, moved a median distance of 19 miles, and their home was on the market for 10 weeks.
85 percent of sellers used a real estate professional, and 64 percent of sellers chose their agent based on a referral or had used the same agent in the past. 81 percent of sellers are likely to use the same agent again or recommend to others.
42 percent of sellers offered incentives to attract buyers, such as home warranties. The typical home sold for 95 percent of the listing price, seller's original purchase price of $36,000. "Even with price declines in recent years, the typical home seller saw their equity increase 27 percent"
Of sellers working with real estate agents, the study found that 80 percent used full-service brokerage, in which agents provide a range of services that include managing most of the process of selling a home from listing to closing.
Source NAR, Realtor.org
Compliments of Mike Patel.
Free Seller Reports. Free Buyer Home Search.
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