National Association of Realtors First Time Buyers Survey

Here are some interesting statistics from a recent report put out by the National Association of Realtors. The N.A.R. based these stats on almost 10,000 responses they received from questionnaires mailed out to recent home buyers.

Over the past twelve years, first-time homebuyers were responsible for buying 42% of all the homes purchased in the US.  In 2006 that number dipped to 36% but in 2007 it again increased to 39%.  70% of them bought a home because they wanted to own real estate and establish a household. 

Living Arrangements Prior to Buying their First Home

• 75% rented an Apartment or Home prior to purchasing
• 18% Lived with Parents

The marital status of first time home buyers is: 

• 51% Married Couples
• 11% Unmarried Couples
• 25% Single Female
• 11% Single Male

Medium Age of First-Time Home buyers.

• 52% were age 24-35 years old
• 21% where age 35-44 years old

A majority of them are planning for their financial future.  Many say they are concerned about Social Security not being around for them.  They don’t expect a free ride so they have been investing. 

Purchase Price Range of First-Time Homebuyer

• 38% purchased a home in the price range of  $100K to $175K

I hope you have found this information interesting and maybe even helpful to your present situation.

This is a great time to buy. If you’d like to see what’s currently available please give us a call and we can tailor a home search specifically to meet your goals.

 We look forward to working with you.

 

Tim Rushing REALTOR® (209)327-0875 trushing@prucalifornia.com

Another Look At Home Inspections

If you are planning to sell your home you may want to consider a pre-listing home inspection. Pre-listing inspections can be beneficial to both buyers and sellers alike. A professional home inspector will review the visible and accessible components of the home, and provide you with a detailed written report on their findings. This can create an atmosphere of openness and trust by showing prospective buyers your not trying to hide anything.

A pre-listing inspection can make your home stand out from others on the market. It also reduces the risk of having to re-negotiate the deal based on surprises found later in the process by a buyer’s inspection.

For more information regarding qualified home inspectors in your area or to obtain a copy of the “ASHI Standards of Practice”, log on to www.ASHI.org.

Consider A Home Inspection Before Buying

Although you may do a thorough walk-through before purchasing a home, it may be a good idea to hire a reputable Home Inspector. Your agent should also perform a visual inspection but once again, it will be limited. A qualified Home Inspector should be considered to do a more in-depth evaluation of the home. The inspection process will generally include an overview of the appliance and utilities associated with the home, as well as it’s overall condition.

What is a Deed in Lieu?

Have you heard the term “Deed in Lieu“?  This term is one you may hear more often  now in our current market. Basically a Deed in Lieu takes place when a lender who is foreclosing on a property decides to allow the current homeowner to deed the property back to the lender before the foreclosure is complete. This action is actually referred to as a Deed in Lieu of Foreclosure. This can be advantageous to lenders because they get the property back sooner from homeowners which reduces their losses. This can also be  advantageous for a homeowner because this option may be less damaging to their credit.

A Great Time To Buy A Home

      This is a great time for renters with a stable income to consider purchasing a home. With so many homes on the market, many due to foreclosures, you’ll find that this is in a lot of respects, an ideal market for first time buyers. With the good interest rates and the lower home prices, you may find a deal that you may not have otherwise been able to afford. Be cautious, however, not to buy beyond your means. Consider all the costs of home ownership, such as upkeep, and taxes and insurance, before you buy. For those who have money to invest, this may also be a good time to purchase a home as a rental.

Even Beverly Hills Has Gone Down In Value

Have you seen that even some of the wealthiest areas here in California are feeling the real estate crunch? Beverly Hills is undergoing some high-dollar foreclosures. And I’ve read that three of the nation’s richest zip codes saw steep price declines in recent months.

The Downside of Short-Sales

Many people think “short-sales” work like a traditional real estate transaction.  Unfortunately there are several downsides to pursuing such an offer.

Les Christie of CNN Money wrote an interesting article about some of the pitfalls of dealing with short-sales. Here’s an excerpt from that article:

 

Lenders say they want to help troubled homeowners, but they are delaying deals that could save everyone. Lenders are taking much longer than necessary to approve short sales, according to Duane LeGate, of House Buyers Network, a short sale specialist. In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home’s mortgage, and forgive the remainder of the unpaid debt. Coldwell Banker CEO Jim Gillespie agrees that short sales are taking too long to complete. And he speaks from firsthand experience; a short-sale offer he made on a house in Marin County, Calif. in late fall didn’t win approval until April. But most buyers can’t, or won’t, wait that long.”That’s been our biggest challenge - keeping the buyers interested long enough as we wait and wait for an answer,” said Jeff Morrell, a Colorado Springs real estate agent who specializes in short sales.

Other pitfalls include the pricing. Most short sales are priced before the bank actually agrees to take less that what remains on the loan. Many are listed as “subject to bank approval” and the bank may very well reject your offer after waiting months for a response.   We certainly experience the same problems when dealing with short-sales here in Turlock, and across the Central Valley.

Should You Consider Buying a Home in the Current Market?

We’re definitely in a “Buyers” market. There’s a high availability of homes, many of them foreclosures, and interest rates are at historic lows. This is really a “second chance” for first time buyers to purchase their own home and a good opportunity for investors to pick up rental property. As a Realtor for Prudential California Realty in Turlock California I get to see the newest listings as soon as they go on the MLS and many before they are even listed through my network of agents who discuss whats “coming soon”.

The Housing Crisis Is Over

“The Housing Crisis Is Over” is the headline of an article written by Cyril Moulle-Berteaux in The Wall Street Journal. He suggests that it is very likely that April of this year will actually mark the bottom of the U.S. housing market. He says that although prices are not about to return to the heights of 2005, the trend is no longer getting worse.

Yesterdays Valley Real Estate Economics Conference

As Stephen Endsley opened up yesterdays meeting he spent the first 1/2hr or so going over what he felt would be “Sustainable Goals For The Next President”. He had, what I would consider, very good stategies on several of the major issues facing our country at this time.  Dr. Endsley expressed his concerns about Energy Independence and the use of Nuclear, Clean Coal, and Oil Exploration here at home. He also addressed Foreign Threats, Government Efficiency, and Balancing the Budget. He’s really got a lot of good ideas and has obviously given this a lot of thought.