According to the National Association of Realtors, the typical U.S. homebuyer spent less and borrowed less in 2011.  Jann Swanson, of Mortgage Daily News, reported on the findings of the NAR's annual Profile of Home Buyers and Sellers released last week. 

The survey is a profile of recent homebuyers and the statistics include age, income levels, type of dwelling purchased, square footage, etc.

The typical first time buyer is 31 with an income of $62,400 who bought a 1,570 square foot home for $155,000 with a monthly payment of $794.

"The typical repeat buyer was 53 years old, earned $96,600 (up from a $87,000 reported last year) and purchased a 2,100 square foot home for $219,500 with a median payment of $1,006." reports Swanson.

The types of dwellings purchased were:  Single Family homes - 37%, condo's - 9%, Townhouse-8 percent, other types - 6 percent.

The median down payment was a full percentage point higher in 2011 than a year ago which is an indicator of tighter loan requirements.   "Fifty-four percent of first-time buyers financed with a low-down payment FHA mortgage and 6 percent used the VA loan program which requires no down payment." said Swanson.

"Banks need to get back into the business of lending," said NAR vice president of research, Paul Bishop.  "Buying your first home has never been particularly easy but we normally would expect a stronger performance. The bar has been raised to qualify for a loan."  He said it's important to relax restrictions.  "Higher home sales would help create more jobs through related economic activity."

Married couples made up the highest percentage of homebuyers.  "Sixty-four percent of all buyers are married couples, 18 percent are single women, 10 percent single men, 7 percent unmarried couples and 1 percent other." reported NAR. "Last year 58 percent were married couples, 20 percent single women, 12 percent single men, 8 percent unmarried couples and 1 percent other."

Read more at NAR.

Posted in Mortgage, Real Estate Market Conditions

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