Back To Blog

Stowe, VT On Real Estate with McKee Macdonald

This week's edition of the Stowe Reporter featured McKee's monthly real estate article.  This month McKee explored first time home buyers.  Here's a copy of the article:

First-Time Home Buyers, looking at the facts.

It has been over a year since the expiration of the Home Buyer Tax Credit; it's time to reexamine what statistics make up the current first-time home buyer. 

According to Ron Phipps, 2011 National Association of Realtors President, "First-time home buyers fell to a 37 percent market share in the past year from a record high of 50 percent in the 2010 study."  This drop off is directly related to the expiration of the home buyer tax credit.  Phipps goes on to say "Long-term survey averages show that four out of 10 buyers are typically first-time buyers."

Who are these buyers, how do they purchase and what motivates them?

  • Median age of first-time is 31 and median income is $62,400
  • 48% are married couples, 23% single women, 15% single male
  • 68% have no children, 18% have one child, 11% have two children
  • 94% chose a fixed-rate mortgage, 54% financed with low-downpayment FHA mortgage and 6% used a VA loan with no downpayment
  • 60% state "desire to own their own home" as their driving factor in purchasing
  • 95% stated being able to personalize their own space and growing value over time as the main benefits of homeownership

The majority of first-time buyers' purchase in urban or suburban areas, but there are three other categories where first-time buyers do purchase that apply to the Stowe area. 

  • 16% purchase in a small town
  • 11% in a rural area
  • 3% in a resort or recreation area

How do these buyers find the homes they purchase?

  • 88% use the Internet
  • 87% use a real estate professional
  • 55% yard signs (not allowed in Stowe)
  • 30% print or newspaper ad

The following is a more in-depth understanding as to where first-time buyers actually identify the home they ended up purchasing.

  • 40% used the internet
  • 35% used a real estate professional
  • 6% from a neighbor, friend or relative
  • 5% from home builder
  • 2% print or newspaper ad
  • Less than 1% from a home book or magazine

While Stowe caters to many different types of purchasers, the fact that the sub $500K price point makes up 55% of the local market, makes it clear first-time buyers remain an important part of the marketplace. 

 

Sources: 2011 National Association of Realtors Profile of Home Buyers and Sellers; Coldwell Banker

To view the article online, click here.