Friday, April 23, 2010

First-Time Homebuyers Drive Housing Market in March: Report

  • March was a record month for US Real Estate. There were more first time buyer sales than ever before, and there were also more distressed sales than ever before. More than half of US homes sold during march were distressed in some way. 18.6% of the homes that sold were Short Sales. Here are some notes from an article on

    tags: first time buyers, short, sales

    • The surge in first-time buyer activity in March came at the same time the volume of distressed properties in the housing market climbed to over 50 percent, according to the survey.
    • The latest survey found that short sales accounted for 18.6 percent of the housing market in March.
    • Campbell survey found that 48.2 percent of March’s home purchase

      transactions were attributable to first-time homebuyers. This eclipsed the previous peak of 46.9 percent reached last October when the November expiration of the original homebuyer tax credit sent purchases by first-time buyers soaring.

      “The strong participation of first-time homebuyers this spring is a welcome surprise,” said Thomas Popik, research director for Campbell Surveys. “Many observers had felt that the pool of first-time homebuyers had been depleted last fall, but this is turning out not to be the case. Instead, the normal spring-summer buying season is combining with the tax credit to produce blow-out results for first-time homebuyers.”

The number of distressed homes is absolutely incredible. It will be really interesting to see what happens to the Utah real estate market this summer, post tax credit expiration. So far the rate of Utah Foreclosures isn't nearly this high. 

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