First Time Home Buyers Increase

According to a recent NAR consumer study, record affordability and the availability of the first-time home buyer tax credit pushed the share of first-time home buyers to 50% from 47%  in 2009 and 41%  in 2008.

The Northeast had the greatest increase in first-time buyers from 48% in 2009 to 56%  in 2010. The Midwest, South, and West all recorded modest increases in the share of first-time buyers.

First Time Home Buyers

The home buyer tax credit was a significant motivation for those aged 18 to 24, with 17 %  of this group citing it as their primary reason for buying a home. For buyers aged 25 to 44, the home buyer tax credit and the desire for a larger home were the primary reasons behind the desire to own a home of their own.

For buyers aged 45 to 64, a job-related relocation or move was the second most cited reason for buying a home now.

The desire to own a home is the most frequent reason given for a home purchase among all age groups except those 65 or older.  Not surprisingly, bBuyers aged 65 or over responded most often that the desire to be closer to family is the primary reason for the purchase.

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