First time home buyers make up about forty percent of the market, but their presence is more important that their minority share indicates. Since their entry into the market is what helps the other sixty percent sell their homes and trade up, it is safe to say if the first-timers fall out of the equation everyone else suffers big time. A recent study by the National Association Of Realtors shows the demographic profile of buyers and sellers around the country and MRIS shared with us a few stats that relate to first timers to the market. If you are a first time buyer you are probably 31 years old and make $62,000 dollars per year, click through to see the rest of the information.
· First-time home buyers fell to a 37% market share in the past year from a record high 50% in the 2010 study
· The biggest reason people buy a home is the simple desire to own a home of their own (cited by 60% of first-time buyers).
· 94% of entry-level buyers chose a fixed-rate mortgage. 54% of first-time buyers financed with a low-downpayment FHA mortgage, and 6% used the VA loan program which requires no downpayment.
· First-time buyers who financed their purchase used a variety of resources for the downpayment: 79% tapped into savings, 26% received a gift from a friend or relative, typically from their parents, and 7% received a loan from a relative or friend. 9% sold stocks or bonds and 8% tapped into a 401(k) fund.
· The median downpayment for all home buyers was 11%, ranging from 5% for first-time buyers to 15% for repeat buyers.
· The median age of first-time buyers was 31 and the median income was $62,400, up from $59,900 in the 2010 study.
· 2011 NAR Profile of Home Buyers and Sellers [OfficialSite (feerequired)]