First-Time Buyers Dominated Second Quarter Sales Activity in Many Markets

RISMEDIA, July 9, 2008-First-time buyers dominated second quarter sales activity in many U.S. housing market by accounting for an estimated 54% of existing home purchases, according to HouseHunt’s latest Current Market Conditions national survey of about 2,000 member-agents. This is an increase of 15 percentage points in the past six months.

Move-up and repeat buyers and investors accounted for the remaining 46% of home sales in April, May and June, 2008.

“First-time buyers normally represent 35 to 40% of home sales activity,” said Michael Bearden, president and CEO of HouseHunt, Inc., “so our latest random survey results illustrate just how upside down the market is in many parts of the country.

“On a brighter note, our survey showed the buyer-seller ratios are firming and that 84 percent of home sellers are receiving, on average, at least 90 percent of their asking prices. Of this figure, 45 percent said they are getting 95 percent or more of their asking prices,” Bearden noted. “This is good news for market stability as we enter the second half of the year.”

Other highlights of the quarterly survey include:

Time on the market: The time it tales from listing to contract continues to lengthen both nationally and regionally. Seventy-two percent of member-agents in the U.S. estimated that it is taking more than 90 days, on average. Sixteen percent said 60-90 days. Only 12% reported less than 60 days. Regional exceptions are Texas, where 72% said less than 90 days; and the West, where 41% reported 90 days or less. In contract, member-agents in Florida said 97% of sellers need more than 90 days to sell a home.

Unsold inventory: Fifty-five percent reported that inventories are up in the past year; 26% said they are down and 19% said it was unchanged. Regions reporting the greatest declines are the Midwest (down 35%), Chicago Metro (down 37%) and Florida (down 42%). Nationally, there is a 10.8 month supply of unsold homes, according to the National Association of Realtors.

Annual appreciation: Negative appreciation was reported in the past year by 65% of member-agents across the country. Regional price depreciation leaders included: Florida (84%); California (83%); the Northeast (77%), and the West (71%). The Texas region reported the highest price appreciation (66%).

Here’s a sampling of member-agent comments gleaned from HouseHunt’s second quarter survey:

Stuart Katzanek of Weichert Realtors in Manalapan, NJ, exclusive HouseHunt member-agent for Marlboro, NJ: “Yes, we’re seeing lots of first-time buyers, particularly young couples looking to buy in the high $300,000 to low $400,000 price range. Our average home price is $375,000 and our inventory of homes is down a bit from last year. Prices are also down about five to eight percent on average.” He said sellers are getting 95-100% of asking prices, on average.

Nick Neill of Cozland Corporate Real Estate Services in the Phoenix metro area, exclusive HouseHunt member-agent for Litchfield Park, AZ, reports that home sales have picked up significantly in the last three to four months: “If properties are priced right, they sell right away. We’re getting a lot of first-time buyers – young couples and singles mostly – who are looking to buy in the $200,000 to $250,000 price range. Our average price is about $300,000.” He pointed out that there are still zero down programs available, creating a great opportunity for first-time buyers.

Nikki Weiner of RE/MAX Equity Group and exclusive HouseHunt member-agent for Salem, OR, reports an increase in both first-time buyer activity and in more expensive homes in the past three or four weeks: “Our first-time buyers are generally younger families with children looking to buy in the $225,000 range, the average price in our city. We’re pleased to see a pickup of activity in homes in the $600,000 and higher category. People here realize that it’s a good time to buy.” She said most sellers are getting 95-100% of their asking prices.

Kimberly Murphree of Murphree Properties, Inc., exclusive HouseHunt member-agent for Central Austin, TX, reported an average time on the market of only 30-60 days despite a surplus of listings: “Currently we have an eight to 10-month supply of inventory instead of our usual four-month supply, she said.”Greatest activity is coming from repeat and move-up buyers.” She added: “Our average home price of $400,000 is up about five percent in the past year. Most of our sellers are getting 95-100% of their asking prices.”

For more information, visit www.HouseHunt.com.

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