FIRST TIME HOMEOWNER vs. MOVE-UP BUYER
First Time Homeowner
- The average age of the householder is 33 years old.
- Almost two-thirds of these householders were under age 35.
- The average first-time buyer household had an income of $63.074.
- Almost two-thirds of first-time buyer households have incomes that are between 50 percent and 150 percent of the AMI, 50%-150%.
- While 17% have incomes greater than 150% of AMI.
- 18% have incomes below 50% of the AMI.
- 31% of first-time buyers are married with children.
- One-person households are about 2x as likely to be male headed as female headed.
- Single parent headed households are about 2x as likely to be female headed as male headed.
- Two-thirds of first-time buyers are white non-Hispanics.
- 11% are black non-Hispanics.
- The percentage of first-time buyers that were previously renters is about 77%.
- Homes purchased had a median value of $150.000.
- Two-thirds bought homes that cost less $200.000.
- The median square footage of home is 1.500.
- Almost 79% purchased single-family detached houses, 11% of these buyers purchased townhouses and another 11% purchased condominiums.
- Almost 86% purchased an existing house, while the remaining buyers either bought a speculatively built home or a custom home.
- Once first-time homeowners made up nearly half of all existing-home sales, but they now make up 35 percent, according to a recently released national Association of Realtors report.
- The average income of move-up buyers is $84.170.
- The average age is 45.
- The average size of those households is 2.7 persons.
- Ratio of household income to the area median income (AMI) is 1.5.
- They have substantially higher incomes than first-timers: largely because move-up buyers are older than first-time buyers as we have seen, and because move-up buyers are very likely to have experienced income subsequent to the
first home purchase.
- 2011, the national Association of Realtors found that the average home-seller had lived in their house for nine years.
- 17% bought a house that cost more than $500.000 while only 6% of first-time buyers could afford such a house.
- 73% purchased an existing house.
- 27% bought a new home.
- 22% of move-up buyers have no mortgage.
- Among those with a mortgage about 60% are able to make a 20% down payment.
- The average and median household size for move-up households is virtually identical to first-time buyer households.
Mountain Seed: www.mountainseed.com | Sources: http://www.trulia.com/maricel_cobitz/2009/01/why_people_rather_rent; http://universe.byu.edu/index.php/2011/10/11/average-age-of-first-time-homeowners-remains-high.