First Time Home Buyers Account For Nearly Half of Home Sales
Great news, the new home owner stimulus package did work. Nearly half of all homes sold between July 2008 and June 2009 were by first time home buyers. Average price was $156,000 and the median income of the household making the purchase was $61,600.
And the last piece of good news is that the government has renewed the new home buyers program.
But think for a second. That means that people moving up are not really moving up that much. 
Only 53% of sales were by current home owners. So if they are not moving up, they are not moving out, and they are not selling their homes.
So we know now that much of the inventory being sold is vacant, either new construction or foreclosures. And the average purchase price would not buy an outhouse in many of the more expensive markets in the country.
So if you are selling in the low end of the market and absorbing young upwardly mobile renters, you probably had a good year. If your trying to sell a mid priced or expensive home you are fighting an uphill battle. The buyers are not looking in your direction yet.
We are still absorbing inventory folks and flushing out the large range of foreclosures on the market. This is not a healthy real estate market yet.
First-time buyers accounted for a record 47 percent of home sales between July 2008 and June this year, up from 41 percent in the prior-year period, according to the survey conducted by the National Association of Realtors.
The annual survey gleans details on everything from how buyers came up with down payments to how long it took sellers to unload their homes. The latest results were derived from more than 9,000 responses, the trade association said.
…
First-time buyers had a median age of 30 and reported a median income of $61,600, the survey shows. The typical first-time buyer paid $156,000 for their home, about $9,000 less than in the Realtors’ 2008 survey.
Repeat buyers were typically a few years older, 48, and earned a bit more than first-timers: $88,100. They also said they planned to stay in the home for 12 years. via Yahoo News
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Comment by Gainesville FL Real Estate on 16 November 2009:
We think next year most markets will normalize back to the historic sales pace. Prices will rise on low cost housing and stabilize in the upper price ranges.
Comment by Sarah Nicely on 16 November 2009:
I think that in WY we can see another year or two of decline
hoping I’m wrong
Comment by Portland Real Estate on 17 November 2009:
One more year of value decline here in Portland probably. Though things seem to be evening out over time.
-Tyler
Comment by Bob on 18 November 2009:
We are seeing a strong sellers market in those areas that were hardest hit with the downturn. One nearby city (San Ramon) has an inventory absorption rate of 2 weeks. The homes that are selling are priced up to $800K. With many of them being sold to first time buyers who have been saving their money for the last 5-7 years. The amount of active inventory is less than half of what it was a year ago. We are just waiting to see what happens when the banks start placing more foreclosed homes on the market.
Comment by houses in beaumont on 19 November 2009:
This is a sign that the real state industry is about to rise again maybe not on its peak but surely it will. Good deal about the houses are offered in a wide range so the home buyers cannot miss this chance to take good deals.