“Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.”
So says Lawrence Yun, Chief Economist for the National Association of Realtors.
Some highlights from the study:
- The number of first-time buyers rose 5% from 2006.
- The median age of first-time buyers went down a year to 30 over 12 months.
- The median first-time buyer income was $60,600. (slightly more here!)
- The average price of the first-time buyer purchase was $165,000. (slightly more here!)
- First-time buyers stated they plan to stay in the home for 10 years, up from seven years in 2007.
- The median downpayment by first-time buyers was 4%, up from 2% in 2007.
- Zero down purchases fell from 45% in 2007 to 34% in the current survey.
- Of first-time buyers that made a down payment, 69% used savings, 26% received a gift (usually from parents), 7% received a loan from a relative or friend, and 16% tapped into a 401(k) fund, stocks or bonds.
- First-time buyers chose a fixed-rate mortgage 92% of the time.
Can you identify? With at least some of it?
