Paul Bishop, NARrnvice president of research said  “Therndownpayment size for both repeat buyers and first-time buyers was a fullrnpercentage point higher than in the 2010 study, [is] another indication ofrntighter lending requirements.” </p

Bishop said ofrnthese requirements, “The bar has been raised to qualify for a loan.  Buying your first home has never been particularlyrneasy, but with record-high housing affordability conditions and a pent-uprndemand, we normally would expect a stronger performance.  This underscores how important it is to openrnthe credit spigot for creditworthy buyers – banks simply need to get back intornthe business of lending.  Higher homernsales would help create jobs through related economic activity.”</p

 “The median pricernpaid by repeat buyers in the survey was 2.1 percent higher than in the 2010rnstudy, but their income was 11.0 percent greater, despite lower interest rates.  First-time buyers paid 1.9 percent more, butrntheir income was 4.2 percent higher,” Bishop added.</p

First-time buyersrnwho financed their purchase used a variety of resources for therndownpayment:  79 percent tapped into savings,rn26 percent received a gift from a friend or relative, typically from theirrnparents, and 7 percent received a loan from a relative or friend.  Nine percent sold stocks or bonds and 8rnpercent tapped into a 401(k) fund. rnNinety-four percent of entry-level buyers chose a fixed-rate mortgage.</p

Buying patternsrnremained essentially unchanged from earlier surveys.  Buyers typically looked at a median of 12rnhomes over a period of 12 weeks and used a combination of resources in theirrnsearch.  Eighty-eight percent used therninternet and 7 percent a real estate agent; 55 percent used yard signs, 45rnpercent attended open houses, and 30 percent read newspaper ads.  A buyer typically starts on-line and thenrncontacts an agent.rn</p

Fifty-one percentrnof all homes purchased were in a suburb or subdivision, 18 percent were in anrnurban area, 18 percent in a small town, 11 percent in a rural area and 3rnpercent in a resort or recreation area. rnThe median distance from the previous residence was 12 miles, the samernas in the 2010 study.</p

More than half ofrnbuyers considered purchasing a foreclosure but didn’t buy one for a variety ofrnreasons: 29 percent couldn’t find the right house; 15 percent each reported poorrncondition and a difficult process.</p

Sixty-four percentrnof all buyers are married couples, 18 percent are single women, 10 percentrnsingle men, 7 percent unmarried couples and 1 percent other.  Last year 58 percent were married couples, 20rnpercent single women, 12 percent single men, 8 percent unmarried couples and 1rnpercent other.  “The growth in marriedrncouples suggests buyers with dual incomes are better positioned to qualify forrna mortgage in this tight credit environment,” Bishop said.</p

The typical home sellerrnwas 53 years old and their income was $101,500. rnSellers moved a median distance of 20 miles and their home was on thernmarket for 9 weeks, up from 8 weeks in the 2010 profile.  Forty-six percent moved to a larger home, 31rnpercent bought a comparably sized home and 23 percent downsized.  Sellers had been in their homes for a medianrnof nine years compared to eight years in the 2010 survey. </p

For-sale-by-ownerrntransactions accounted for 10 percent of sales, above the record-low 9 percentrnin the 2010 study, but well below the record high of 20 percent set in 1987.  The share of homes sold without professionalrnrepresentation has trended lower since last reaching a cyclical peak, which wasrn18 percent in 1997.

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