Study says number of first-time home buyers increasing

Low home prices and excess supply helped drive a rise in first-time U.S. homebuyers and reduce excess inventory, according to a study released Saturday by The National Association of Realtors.

According to the survey, which was released at the 2008 Realtors Conference & Expo, the number of first-time buyers rose to 41 percent from 39 percent of all transactions in 2007.

"First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home," National Association of Realtors Chief Economist Lawrence Yun said in a statement.

Other interesting tidbits:

• According to the study, the median age of first-time buyers was 30, down from 31 in 2007.
  The median income for a first-time buyer was $60,600 and typical first-time buyers bought homes costing $165,000.
• Of first-time buyers who made a down payment, 69 percent used savings and 26 percent used money from a friend or relative. Another 7 percent received a loan from a relative or friend, while 16 percent used funds from their investments. A fixed-rate mortgage was chosen by 92 percent of those surveyed.

Click here for the full article from MSNBC.