The federal tax credit for first-time home buyers has been extended through the end of April 2010. Generally, lower home prices and the tax credit extension are key factors in luring first-time home buyers into the real estate market. The National Association of Realtors reported that first-time buyers comprised 47% of the 2009 market share. In 2008, first-time buyers made up only 41% of the market.
So who are these buyers? Here are a few demographic details from the 2009 National Association of Realtors Profile of Home Buyers and Sellers report.
- Median Age: 30
- Median Income: $61,600
- Average Price of Home Purchased: $156,000
- Future Plans: To live in the home for 10 years
In contrast, here are the demographics of the typical repeat buyers:
- Median Age: 48
- Median Income: $88,100
- Average Price of Home Purchased: $224,500
- Future Plans: To live in the home for 12 years
To some extent, home sellers can also be considered repeat buyers. The NAR report indicates that home sellers had been in their existing residence for 7 years and planned to move 19 miles. The resale process lasted an average of 10 weeks and about half of these households traded up for their next home.
Realtors are certain to be using these demographics to fine-tune their marketing messages to increase general activity in the 2010 housing market.[Source: Profile of Home Buyers and Sellers, National Association of Realtors, 2009]