It seems like developers and brokers are always telling us that it’s a great time to buy a home, regardless of the economic climate. According to National Association of Realtors Chief Economist Lawrence Yun, that may be correct, at least for a specific type of buyer.
“First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home…It’s been an optimal time for entry-level buyers with a long-term view.”
According to a new survey, the number of first-time buyers rose from 39 percent of all transactions in 2007 to 41 percent this year. Yun in an Associated Press article attributed the increase to low prices, “plentiful” supply and affordable interest rates, and he expects further increases in first-time home buyers due to the temporary, $7,500 first-time buyer tax credit and to improvements to the FHA loan program.
The NAR found that the median age of first-time buyers was 30, their median income was $60,600, and their homes on average cost $165,000.