First-Timers Snap up 47% of Homes

Nearly half of home purchases statewide last year went to first-time buyers, the highest since 1995, the CALIFORNIA ASSOCIATION OF REALTORS® reported.But its chief economist said first-timer dominance may dip a bit this year because of the pending end to the $8,000 federal homebuyer tax credits.

A survey of 15,000 association members conducted last summer showed that 47 percent of single-family resale purchases went to first-time buyers, up from 35.9 percent in 2008 and the highest since just more than 50 percent in 1995. The survey was not broken down by county or metro area.

The group’s chief economist, Leslie Appleton-Young, said the rise was due to falling prices, low mortgage rates and the tax credit. But when the credit ends this spring, she said popularity may wane among first-timers, although the proportion could still rise above 50 percent given how weak the more expensive end of the market continues to be.
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Christine Van Tuyl
Prudential California Realty
Coronado, CA 92118