First-Time Home Buyers Hit Record Share

Washington, DC, Jan. 7, 2010--First-time home buyers dominated the market last year, according to a survey by the National Association of Realtors.

First-time buyers accounted for 47 percent of sales, the highest share on record, according to the survey, “Profile of Home Buyers and Sellers.”

First-time buyers accounted for 41 percent of sales in 2008. The high mark previously was 44 percent.

“Tax incentives, record high affordability conditions and a pent-up demand brought a record share of first-time home buyers into the market,” said Paul Bishop, NAR's vice president of research.

The profile shows the median age of first-time buyers was 30 and the median income was $61,600. The typical first-time buyer purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.

By comparison, the typical repeat buyer was 48 years old, earned $88,100, purchased a home costing $224,500, and plans to stay in that home for 12 years.