La Jolla Real Estate, Del Mar real estate, Rancho Santa Fe Homes, Carmel Valley Real Estate, University City and
Downtown San Diego real estate, homes and condos for sale in California - Ruth Mills & the Mills Team, REALTOR.






Search the San Diego MLS
(includes all areas in San Diego County)

April 23, 2010

NEARLY FIFTY PERCENT OF HOMES SOLD ARE BOUGHT BY FIRST TIME BUYERS
Almost fifty percent of homes sold in California during 2009 were purchased by first time buyers, which is the greatest percentage since the mid 1990's when the number hit just above fifty percent. This high number may well diminish once April 30, 2010 rolls around, and the federal tax incentives for first time buyers will come to an end.

Lower home prices, low interest rates and the availability of the tax credit were all contributing factors to the great number of first time purchasers. While this number may drop after April 30, as the market for upper-end homes is still lacking in strength, it is still possible that the number of first time buyers may exceed the fifty percent mark.

This weakness in the higher end of the market is caused by pricing that is not realistic which is often due to the fact that sellers have often experienced a considerable loss of equity. This can make it difficult for some move-up buyers to find a property that is affordable. Some lower end homes may have a fifty percent drop in price, which makes them very attractive to the first time buyer.

While the number of available homes on the market has dropped, as of February 1, there remained a nearly six month supply of starter homes and almost a fifteen month supply of more expensive homes.