NAR: 1st-Timers Boosting Housing Market

A large pool of first-time homebuyers is providing liquidity to the housing market, according to a new survey released by the National Association of Realtors.The NAR Profile of Home Buyers and Sellers, based on transactions from mid-2003 to mid-2004, found that the first-time homebuyers account for about four in 10 home purchases. David Lereah, the NAR's chief economist, said the market share of first-time homebuyers has been stable since 1993. "Strong activity by entry-level buyers has provided solid and substantial growth to the housing market over the last decade," Mr. Lereah said. Demographics favor a continuation of the trend, he said, because "echo-boomers, the children of the baby boom generation and almost as large, will be in the prime years for buying a first home for the next decade. These findings demonstrate a fundamental underlying demand that will be driving the housing market at a higher plateau for the foreseeable future." The NAR said the typical first-time buyer is 32, has a household income of $54,500, and makes a 3% downpayment on a home costing $139,000. The NAR can be found on the Internet at http://realtor.org.