Last year will be remembered as one of the strongest buyer’s markets of all time and in particular it was a good year for the first-time buyer who was able to take advantage of the low interest rates, more affordable home prices a large supply of homes on the market and the first-time homebuyer tax credit.
More than half of homebuyers surveyed in the 2009 Profile of Illinois Home Buyers and Sellers were first-time buyers, due in large part to the first-time homebuyer tax credit stimulus and increased affordability in home prices in the last year. The survey results released by the Illinois Association of REALTORS® (IAR) found 51% of buyers were first-time buyers, compared to 47% nationwide (a figure which has averaged closer to 40% nationwide since 2001). When asked about the primary reason for timing of the home purchase, 46% of first-time buyers said it was just the right time.
The first-time buyer trend should continue early in 2010 as the $8,000 first-time buyer tax credit has been extended through April 30 and expanded to include a tax credit for long-time homeowners of up to $6,500.
The median age of first-time home buyers in Illinois was 29 years old, while the typical repeat buyer was 45 years old. The median income was $64,400 among first-time buyers and $92,800 among repeat buyers.
Forty-seven percent (47%) of first-time buyers used Federal Housing Administration (FHA) financing compared to 33% who used a conventional loan to finance their home purchase. Out of all buyers, 33% used FHA and 55% obtained a conventional loan.
Find report highlights at www.illinoisrealtor.org.