Monday, November 15, 2010

First time homebuyer rates surge

First-time homebuyers accounted for 50% of all home sales from July 2009 through June 2010, according to a National Association of Realtors (NAR) survey of buyers and sellers.

That's the highest share of first-time-buyer purchases in the history of the survey, which dates back to 1981.

In July 2010 first timers bought 38% of the homes sold, down a bit from the 43% rate in June.

The survey also showed that investors accounted for 19% of sales in July 2010, up from 13 percent in June; the balance (43%) were to repeat buyers.

A quick check of our sales here at The Phoenix Agents shows that first time buyers were 30% of our client base over the period July 2009 to June 2010. Investors accounted for another 30% of our business, while repeat buyers were the remaining 40% of our clientele.

I think what’s being ignored in the mainstream media (and probably the blog world too) is that 4 of 10 home buyers were repeat buyers. They sold a home and bought another, even in this grim economy.   That’s interesting. I’m not sure yet what it means, but it’s interesting considering our collective mindset this year has been the image of an economy in Neutral and a government in gridlock.

Source Article: NAR Existing Home Sale Survey