First Time Buyers

First time homebuyers purchased over $420 Billion in real estate in 2010! First-time buyers are the most active segment in the Tampa Bay real estate market. These eager buyers are looking for the best deals that work within a tight housing budget.

The 2010 NAR Profile of Home Buyers and Sellers shows that 50% of all buyers were first-time buyers. The survey reports single buyers represented 32% of buyers, while the percentage of married couples declined to 58%. The share of single female buyers held steady at 20%, while single male buyers accounted for 12%.

A Smart Move

Despite the negative news and housing crash, many still consider buying a home in the Tampa Bay area a smart financial move. The primary reason for purchasing a home was the desire to own a home. Though potential buyers are renting, living with family, they cannot delay housing formation indefinitely. First-time buyers are motivated by affordable home prices, low interest rates, tax advantages, the desire for privacy, the investment potential, the the large number of distressed properties and the benefits of home ownership.

Generation Y

Did you know that Generation-Y (the echo-boom or millennial generation born between 1979 and 1994) is over 80 million strong and reaching the age of most first-time home-buyers? The median age of first-time buyers is now 30 and the largest share of first-time buyers was between 25 and 34 years of age. The Millennials have tremendous buying power. What is your Tampa Realtor doing to market your home to this tech savvy segment?

The Jedi mind tricks used by your father’s advertising agency do not seem to work with the millennial demographic. A Wall Street Journal series about marketing to young people noted “they can tell when they are being marketed to…the ability to decode marketing messages is like a birthright to this generation. The same formulas that resonated with earlier generations no longer work”. The article went on to report that GenY does not trust traditional media and they are much more active on-line. In Buying In, What we Buy and Who We Are, Rob Walker presents strategies for reaching this core audience.

Single Buyers

While families dominate the segment, single buyers now account for about one-third of all home buyers. A Builder Magazine survey shows that almost half of singles are considering buying because of a life-changing event, such as a divorce, a new job, or the death of a spouse. They often place less emphasis on square footage, more value on up-to-date kitchens, and look for quality upgrades on a budget. The survey reports that singles prefer newer homes, are more motivated by a shorter commute, are more likely to buy a townhouse, and are more inclined to make a decision based upon community characteristics.

NAR Report on Single Buyers

The National Association of Realtors® (NAR) Profile of Home Buyers and Sellers 2010 reported that:

The share of first-time single male buyers increased from 12 percent in 2009 to 15 percent in 2010. Among first-time buyers the share of single female buyers was 23 percent, and the share was 17 percent among repeat buyers. Married couples represent 48 percent of first time buyers and 68 percent of repeat buyers. Thirty-two percent of first-time buyers had children under the age of 18 in the household, compared to 37 percent of repeat buyers.

Prior Living Arrangement

The 2010 NAR Profile of Home Buyers also found nearly half of all buyers were renting an apartment or house immediately prior to making their home purchase.

Key Demographic

While the tax credits of 2009 and 2010 pulled first-time buyer demand forward, this is still the most important segment in the Tampa Bay real estate market. The action is concentrated in the lower price ranges, particularly under $200,000.

Recent surveys how that first-time home buyers:

• Intend to own their homes for a decade
• Are looking in lower price ranges
• Are very sensitive to interest rates
• Are concerned about timing a purchase
• Start their home search on the internet (90%)
• Rely on real estate agents
• Are taking longer to pull the trigger
• Are looking at foreclosures and other distressed properties
• Are worried about qualifying for a loan
• Are planning to ask a seller for closing cost contributions
• Will ask the seller to pay for a home warranty

Short Sales

Did you know that 82% of first-time buyers are willing to view a short sale or foreclosed property? In 2010, 40% of first-time home-buyers purchased a distressed property.

83% Buy With A Realtor

When it comes to selecting a Realtor, first-time buyers rely heavily on referrals from family and friends. The survey shows that 83% of buyers purchased through a real estate agent. Annette, Doug and Dale Bohannon have helped several hundred first-time home buyers reach their goals. We have even helped the children of first time buyers purchase their first home!

What strategies work the best for attracting this important buyer profile? Contact the Bohannons at Coldwell Banker Residential Real Estate in Tampa, Florida today.