First Time Home Buyers Made Up 50% of Market in 2010

The 2010 Profile of Home Buyers and Sellers conduced by NAR told us a number of interesting things and may give us some insight to 2011 trends.

In 2010 first-time homebuyers made up 50% of the market. A number of reasons can be attributed to this phenomenon.

-First-time buyers do not need to first sell a home to buy

-Prices had dropped in the past 2 years

-Tax credits

-Low interest rates

Foreclosure properties, though prevalent, were not popular

-Only 4% of buyers purchased a home that had been foreclosed

-39% of buyers did not even consider buying a home in foreclosure in 2010

The internet search isn’t going anywhere

-The trend of an online home search continues, with 74% of buyers using it frequently during the search process

-36% used the internet as there 1st step in the process vs. only 19% who contacted an agent first

-Of the MLS websites, 45% preferred, 43% went to company websites, 42% went to individual agent sites, and 41% used aggregator sites like Zillow

-in 2010, only 2% found the home they eventually purchased through a newspaper ad and fewer than 1% found it through a home magazine.

With the tax credit gone it will be interesting to see how that ratio of first time / veteran home buyers plays out. Food for thought…

And Thank Your For Making Me Your Orange County Real Estate Specialist!

 Best Regards,


Past President, Orange County Association of Realtors



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