First Time Home Buyers at All Time High
With the homebuyers’ tax credit particularly targeting first time homebuyers, it’s no wonder that so many flocked to the housing market. In fact, I too took the incentive offered and purchased my first home last year.
According to the latest consumer survey by the National Association of Realtors® (NAR), first-time home buyers reached the highest market share on record during the past year. In fact, the number of first-time home buyers rose to 47 percent of all home sales, up from 41 percent in last year’s study. This marks the highest number on record dating back to 1981.
Paul Bishop, NAR vice president of research, said “It’s interesting to note the last cyclical peak of first-time home buyers was during the last noteworthy economic downturn, with first-time buyers starting the chain reaction that led the nation out of recession.”
It is important to note that first time home buyers are critical not only to the housing economy but also to the overall economic recovery through their buying power of related goods and services. Especially since first-time homebuyers have been attracted to popular forms of distressed homes, such as short sales and foreclosures. These fixer uppers often require first time home buyers to make frequent trips to the local hardware store, as was the case when I purchased my foreclosure.
As Bishop noted, the last spike in first time homebuyers was the first step in leading our nation out of the recession. Let’s hope that history repeats itself! I’d like to say congratulations to those making their mark on the economy and enjoy the roller coaster ride known as homeownership!