What Happened to the 1st Time Home Buyer?

Thursday, July 8th, 2010 | Investment, Real Estate, Statistics, The Economy

The big news about first time home buyers was that the government had extended the time for the $8,000 tax credit. Unfortunately, in the small print was that the extension was only for contracts that were in process of closing. So the buyer who didn’t purchase before the deadline are not going to see any tax credits. This was also true for the move up $6,500 credit.

Can you guess what happened to the 1st time home buyer market? The 1st time buyer market share dropped from 48.2% to 42.0%. Current buyers rose from 33.5% to 39.5%. Investors were just about flat at 18.3%.

In the Phoenix market the only significant change in the sale of residential real estate is that pending sales are down 17% from last month and 18% from last year. There is a drop in demand which brings our market to stable supply and demand. The median price for a home is $127,000 with the average price at $181,643.
These are current up to date statistics from the Cromford Report.

If after you look at the numbers you ask yourself “so what does that mean?” The market is showing only a slight decrease. If it continues then you can expect thing to go poorly. But the change is so slight that you can be somewhat encouraged. The market has to stop going down before it can go up.

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