2008 Profile of Home Buyers...More Insights About You -A Look at First Time Home buyers

Home Buyers and Sellers in Charlotte NC-

November 15th, 2008 Categories: Buy A Charlotte Home

2008 Profile of Home Buyers and Sellers Gives Us (Brokers) More Insights About You (Clients)

Charlotte NC It’s no secret that the primary readers of Charlotte Communities are home buyers, most are families and singles considering relocating to Charlotte, many first time home buyers, the occasional home seller, and others in Charlotte considering buying or selling a home. The latest National Association of Realtors Home Buyer and Seller Profile is a marketing study conducted between July 2007 and June 2008; with over 10,000 returned questionnaires it is the most comprehensive buyer / seller survey available and provides valuable insight to the Brokers about their customers. It tells me about you! See what’s true for you below…

Here are a few nuggets about first time home buyers:

First time home buyers % of overall purchases increase 5%- notable because a) we’ll need them to restart demand through out the market and b) they are the “echo-boomers” children of baby boomers like me.
The median price of the first time home buyer home as $165,000
First timehome buyers chose a fixed rate mortgage 92% of the time
First time home owners expect to be in the home 10 years (up from 7last year) this is wise
The median down payment was 4%, reflecting the availabitlity of no money down loans in addition to traditional FHA/VA low money or no money down programs (most no money down programs have been discontinued unless you are a veteran)
The median age of first time home buyers is 30- but for women its a bit younger than men- the smarter sex.
Down payment money came from a variet of sources: 69% used savings, 26% received a gift(parents typically), 7% a loan from a relative or friend and 16% tapped into 401 Ks.

So, what does this all mean to us? It s the “market” adjusting to new realities- the growing number of “echo boomers” who are ready, willing and able to step to the plate in search of equity and value, and their ability to do so since they do not, by definition, have a property to sell. And as they see the market around them, they have adjusted their sights and plan to stay longer in that home (10 years) than before. This longer view should result in better housing decisions.

Of course it is great to be needed (if not loved:)) and more than 80% of all respondents used and Agent in their transaction. The number for Buyers was 81%- 81% used an Agent to represent them in the purchase of their home, clearly the more educated of the group. (ha, my own conclusion) but really, what reason is there to Not use a Buyer s Agent? Private transactions between friends-family, sure. where else? Because a Builder has an nice Agent? Uh no- they represent the builder!

For more on this please visit my now famous post on “Why You Always Need A Buyer Agent!” And 10 Essentials To Buying A New Home.

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Moving to Charlotte? Your first Charlotte home?

Have a home buying or home selling questions? I am a Charlotte real estate broker specializing in relocations, 2nd homes–buying and selling real estate of all kinds- and will represent only you. We work with Buyers and Sellers every day in Myers Park, Southpark, Matthews and Huntersville, Lake Norman, Waxhaw and Lake Wylie too. My team and I know the homes, the communities, and the new home builders. We know what’s hot, what’s not and where the deals are. I think as you read my posts you’ll see that we understand home buyer needs, from a first time home owner to a luxury home purchaser.

If you still haven’t figured out where you might want to live in Charlotte, you may compare area Charlotte home prices and communities, from our MLS based home search below. If you haven’t already, try my my fact-filled and well received Introduction to Charlotte NC Video (over 9000 You Tube views) and don’t miss the FAQ videos-answering the Big Question- Where to live in Charlote, or where to look for a luxury home in Charlotte? (in the right column just under the Introduction to Charlotte Video Screen)

If it’s between the hours of 8 AM to 8 PM, EDT, please don’ t hesitate to call me direct at 704-351-1519. Terry