WHO IS BUYING REAL ESTATE AND HOW THE HOUSING MARKET HEALS FROM THE BOTTOM UP!
“The market always heals from the bottom up" according to Paul Bishop,National Association of Realtors Vice President of Research. According to the recently released sales numbers 47% of buyers this past year were first time home buyers. Surpassing the previous high record of first time purchasers set back in 1991.
"These buyers are critical to housing and a general economic recovery ...they absorb inventory, free existing ownersto make a trade and stimulate related goods and services" said Bishop. He compared this rise to the last recession in 1991, where the same dynamic played out "first time home buyers started the chain reaction that led the nation out of recession" he said. Bishop credits tax incentives, record high affordability, and pent up buyer demand to this spikein recent sales. Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.
BUYER PROFILES ARE ALSO DIFFERENT THAN ONE WOULD EXPECT
Themedian age of a first time home buyer is 30 indicating that some are younger and some are older. They are planning to live in their homes for at least ten years. The typical cost Nationwide was $156,000 down 7% from last years figure of $165,000. 87% of First time Home Buyers surveyed considered their home to be a good investment." Single Family homes sold a higher rate than other forms of housing. In fact 78% of the home achieved were single family homes.
HOW ARE BUYERS PAYING FOR HOMES? 96% Choose a fixed rate mortgage. (55% used FHA compared to 8% Using VAPrograms) 61% of First time buyers used their savings as a down payment. 22% received down payment assistance as a gift from family. 6% received loans for down payments from family 6% tapped into a 401 (k) program
WHAT IS OLD IS NEW AGAIN- SAVING MONEY FOR A DOWN PAYMENT ON A HOME
39% of home buyers have cut back on luxury items, 38% cut back on entertainment and 30% cut back spending on clothing according to the study.
THE TAX CREDIT EXPANSION INTO 2010
The expansion of the $8,000 tax incentive program for 1st time home buyers will extend to homes placed under purchase agreements by April 30, 2010. It will also provide home buyers who have owned a home in the past 5 years with a $6,500 tax credit when they purchase a new home by the April 30th deadline.
ARE YOU INTERESTED IN MOVING TO A NEW HOME? FIRST TIME HOME BUYER?
80% of first time home buyers are using the Internet.
Now is the time to put your current house on the market to prepare for your next move. Use this link below to begin your search for available homes. OR Let me help you search for the perfect house.
Shelly Rampetsreiter 816-582-8723 ShellyR@InfinityRealtySells.com