First Time & Distressed Property Home Buyers
Friday, December 18th, 2009
What are first time buyers doing?
The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009.
- The median age is 28, significantly down from where it was in 2005 at 32.
- Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
- 2 out of 3 sellers paid at least part of the buyer’s closing costs.
- 76% used their own savings for the down payment.
- 1 in 4 had help from their family for the down payment.
As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property:
- 27% of foreclosures* were purchased by investors.
- 47% of distressed* properties were purchased by first-time buyers.
- 89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit.
- 7 in 10 agents have seen an increase in multiple offers.
- Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation.