Buyer Power: First Timers Fuel Increase in Sales

Did you know:

First-time homebuyers account for 53 percent of all transactions?
Pending home sales increased for the second month in a row due to near record housing affordability and all-time-low interest rates?
The median mortgage payment now consumes 15 percent of family income in comparison to 22 percent of income two years ago?

Last week, the National Association of REALTORS® reported that the Pending Home Sales Index, a forward looking indicator based on contracts signed in March, was on the rise – up 3.2 percent to 84.6 from a level of 82 in February. What’s causing the current upswing? NAR Chief Economist, Lawrence Yun, says that the increase in the number of first-time homebuyers taking advantage of the $8,000 tax credit, historically low interest rates, and general housing affordability has been crucial in the initial turn around in overall sales.

Those numbers are in line with another statistic NAR produced earlier this year: 53.5 percent of home buyers in 2009 will be first timers.

Want to take advantage of this great opportunity, give us a call for a free consultation at 972.468.5136.