Sound Mortgage Planning Blog

(2008 NAR Survey Results)

The blog entry you are about to read is from data interpreted from the NAR’s Profiles of Home Buyers & Home Sellers, 2008. While I list some of the stats you are about to read,  I have interpreted the “who, what, where and how”.

A little bit about the survey…it’s based on 10,053 responses and home purchased from June 2007 to June 2008. Since it ended June 2008, I believe that there will be even MORE first-timers entering the real estate market!

• First-Time Home Buyers Made up 41% of All Home Purchases

While it has increased 2% over last year, regionally, the Northeast has increased the most with 46% (or almost ½ of all homes being sold to FTHB); 41% Midwest; 39% South; 41% West. Four out of every 10 buyers fit into this category—FTHB need more homebuying education and the way a lender or real estate agent interacts with them will be different than a homebuyer that has experience buying a home.

• Living Arrangements Prior to Buying Their First Home

75% of FTHB lived in apartment complexes or rented a home or condo prior to purchasing. It’s unchanged from 2007. 19% lived with parents prior to purchasing.

• Marital Status of First-Time Home Buyers

49% Married Couples

12% Unmarried Couples

24% Single Females

12% Single Males

These numbers only vary 1 per cent over 2007 numbers. Notice that single female buyers are double the percentage of single males and half of married couples. FTHB seminars are a way for FTHBs to learn about the home buying process and possibly meet a reliable real estate agent or lender.

• Medium Age of First-Time Home Buyers

54% - Age 24-35

20% - Age 35-44

Think Gen X here! They are independent, blunt and skeptical!

• Average Income of First-Time Home Buyers

Single women earn 13% less income than single males, but they purchase twice as many homes.

• Purchase Price Range

16% - Price Range $75K to $100K

39% - Price Range $100K to $175K

Some areas of country are more affordable than others—however based on this info, over half of FTHB are more likely to purchase a home $175K or below.

• Moving Distance From Current Residence

FTHB move an average distance of 13 miles from their previous residence (apartment or parent’s home).

• Information Sources PRIOR to Buying Home

2007		2008
87%	Internet Search Prior to Purchase	94%
56%	Virtual Tour	63%
49%	Newspaper Ads	45%
44%	Open Houses	48%
30%	Homes Magazines	30%
9%	TV	9%

Without a doubt, the Internet plays the most important role in the first steps that FTHB take when looking for a home.

• The Internet, Virtual Tours and Social Networking

Added to the survey questions in 2008 was the FTHB use of social networking to find homes and real estate agents. 42% of buyers, age 18-24 uses Social Networking sites EVERY DAY versus 19% of buyers, ages 25-44. However, in the 25-44 age group, another 14% (total of 33%) use it several times a week.

• Length of Time to Buy Home

• Financing The Home Purchase

If you are a First Time Home Buyer or know of someone who is renting, you may want to have them view this 12-minute video presentation regarding the benefits of owning a home.