First-Time Buyers: What Research Tells Us

First-Time Buyers

In 2009, first-time homebuyers comprised a whopping 47% of the market. Most likely due to the federal tax credit and historic affordability, according to the NATIONAL ASSOCIATION OF REALTORS 2009 PROFILE OF HOME BUYERS AND SELLERS. Housing economists predict that 2010 will be an even bigger year for first-timers.

So...WHO are these people? And WHAT do they want?

• MOST ARE MARRIED: 49% are married couples. Single females make up about 25%, while single males account for just 12%.
• THEY'RE YOUNG: More than half, 53% are between the ages of 24 and 34, and 12% are younger than 24.
• THEY'RE DIVERSE: 22% are part of a minority group. 6% speak a languauge other than English, and 12% were not born in the United States.
• THEY LIKE THE 'BURBS: Even though 22% purchase in an urban area, the suburbs continue to be the most popular location, with 52% buying there. The 3rd most popular spot is a 'small town'.
• THEY TAKE THEIR TIME: First-time buyers take an average of 2-4 weeks longer to find their home than repeat buyers.
• THEY'RE NOT AFRAID OF FORECLOSURES: 11% of first-timers bought a home in foreclosure, and 56% considered it. Compared to repeat buyers, only 9% bought a foreclosed home, and only 41% considered it.
• THEY'RE MOST LIKELY TO USE A REFERRAL: 53% found their agent through a referral.