The latest NAR Profile of Home Buyers and Sellers was released during NAR's annual conference and expo earlier this month. This article reports on some of the highlights from the 2008 Profile that focus on home buyers.
First-time Home Buyers Demographics
- 61percent of home buyers are married couples.
- 20 percent of home buyers are single women.
- 10 percent of home buyers are single men,
- 7 percent of home buyers are unmarried couples
- 2 percent other.
The percentage of first time home buyers accounted for a larger market share of home purchases compared to the past five surveys.
- 2008 - 41%
- 2007 - 39%
- 2006 - 36%
The increasing share of first-time buyers is due to a variety of reasons, not the least of which is because they do not need to be concerned with selling a home they already own before purchasing another one.
The "typical" first-time home buyer was 30 years old - slightly younger than the typical age reported in 2007.
The median income of first-time buyers was $60,600. And while married couple households account for 49 percent of all first-time buyers, single females represent a quarter of first-time purchasers.
The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.
FYI, the typical repeat buyer was 47 years old, earned $88,200, purchased a home costing $236,000 and plans to stay in that home for 10 years. Repeat buyers made a median down payment of 15 percent, but 10 percent paid cash for their property.
What They Bought
Detached single-family homes are the most popular choice for home buyers, whether they are first-time purchasers or repeat buyers.
More than three-quarters of all home buyers bought a detached single-family home.
- 10 percent of first-time buyers purchased a townhouse;
- 11 percent of first-time purchasers bought a condo, vs. 8 percent of repeat buyers.
(These results probably reflect the relatively lower cost of those types of homes in most areas.)
