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What are other first time buyers doing?

The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009.

1. The median age is 28, significantly down from where it was in 2005 at 32.
2. Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
3. 2 out of 3 sellers paid at least part of the buyer’s closing costs.
4. 76% used their own savings for the down payment.
5. 1 in 4 had help from their family for the down payment.

As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property:

1. 27% of foreclosures* were purchased by investors.
2. 47% of  distressed* properties were purchased by first-time buyers.
3. 89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit.
4. 7 in 10 agents have seen an increase in multiple offers.
5. Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation.

* Distressed – Short Sale and REO, Foreclosure – REO Only

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