Watch Video

While sometimes it feels natural to focus on life’s challenges and difficulties, I’m grateful that the Thanksgiving Holidayis upon us.  For me, Thanksgiving is at rue reminder about all that I have to be thankful for. From my family to yours Iwish you all a Happy Thanksgiving.

As it turns out, I’m thankful for all the first time home buyers who, according to a report released by the National Association of Realtors®, have represented 47% of buyers this year.  This surpasses the previous high record of first time purchasers set back in 1991.This can best be illustrated in data show in these graphs just released by Zillow.com. 

The first graph is the San Francisco Metro Area and includes San Mateo, San Francisco, Alameda and Contra Costa Counties.

The second graph is Santa Clara Metro Area comprising Santa Clara and San Benito Counties.

It’s clear that the housing recovery for the bay area began at the beginning of 2009 and continues to progress.   It’s also clear that first time buyers are critical to housing and a general economic recovery.

Why? Because they absorb excess inventory created by the high number of financially stressed homeowners and resulting foreclosures.  The research confirms that the current high level of first time buyers compares to the recession in 1991,where the same dynamic played out as first time home buyers started the chain reaction that led the nation out of recession.   The combination of tax incentives, record high affordability, low interest rates and pent up buyer demand has led to a high level of sales which began earlier this year.  Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.  

The survey reflected that the median age of a first time home buyer is 30. First time buyers are being realistic about thelong term nature of their investment by planning to live in their homes for atleast ten years.  Nationwide, 78% of the homes purchased were single family homes.

Of all the first time buyers, 96% choose a fixed rate mortgage.  61% of first time buyers used their savings as a down payment while 22% received down payment assistance as a gift from family.  This tells us that saving for a down payment is back in vogue.

And no surprise here, a staggering 84% of first time home buyers are using the Internet to find their new home.  

Reflecting the complexities of the market,85% of successful home sellers used a Real Estate Professional to sell their home.  The actual number of homes sold without buyer or seller representation was a record low according the most recent survey only 6%.  

If you have an interest in Bay Area homes you will find what you are looking for at our website, www.AboutBayAreaHomes.com.  

There you will find links for homesearch, listings for bank owned and short sales, home loans, market activity reports, home seller strategies, staging and decorating, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email mefor a prompt response.