First time homebuyers purchased 35% of all homes for sale during July 2015 and June 2016 whereas first time buyers purchased 50% of all homes for sale during June 2009 and June 2010. Whatever the reasons for this drop, and there are many, it is important that you know who these first time buyers are.
The National Association of REALTORS (NAR) describes first time homebuyers in its 2016 Profile of Home Buyers and Sellers. Here are NAR’s first time buyer findings:
First time homebuyers = 35%
Median age of first time homebuyers – 32
Race/Ethnicity
79% – Caucasian
9% – Hispanic
8% – Asian/Pacific Island
7% – African American
3% – Other
Median Income = $72,000
Household Type
58% – married
18% – single women
5% – single men
14% – unmarried couple
2% – other
Number of Children
60% – none
19% – one
15% – two
5% – three or more
Prior Living Arrangement
74% – rented
21% – lived with parents
4% – owned/inherited home
1% – rented to ultimately purchase home
Median Home Price = $182,500
Median Home Price For
$208,500 – married couple
$146,300 – single woman
$157,000 – single man
$165,500 – unmarried couple
$161,200 – other
Home Type
82% – single family detached
9% – town/row house
1% – apt/condo in 5+ unit building
2% – duplex/apt/condo in 2-4 unit building
Median Down Payment = 6%
Amount Borrowed
8% – borrowed less than 50% home price
2% – borrowed 50-59% home price
2% – borrowed 60-69% home price
7% – borrowed 70-79% home price
20% – borrowed 80-89% home price
15% – borrowed 90-94% home price
29% – borrowed 95-99% home price
17% – borrowed 100% home price
Born in USA = 87%
