Aug 24, 2009

For First-Time Homebuyers, Times Are Good

Even an economic downturn means good news for some people, and first-time homebuyers are turning out to be big beneficiaries of this recession. The National Association of Realtors says that new buyers accounted for 44% of 2009 home sales -- a rate that hasn't been topped since 1991.

Hindsight being what it is, I can already imagine the conversations over lunch, as people just entering the housing market today congratulate themselves on having waited so long ("We knew prices had to come down some time!") And all the while, they've been building up their savings for a down payment.

Plus, they're eligible for a nice $8,000 tax credit if the sale closes by this December. (For a nice Q&A regarding the details of this credit, see Edith Lank's August 15th column in the Chicago Daily Herald.) 

For profiles of buyers and details on how first-timers can take advantage of current market conditions, check out the SmartMoney article by Brad Reagan in their September, 2009 issue.