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Friday, November 20, 2009

National Survey: Data on Home Buying Financing

by Calculated Risk on 11/20/2009 01:43:00 PM

Here is some national data on home buyer financing in October. This is from a survey by Campbell Communications (excerpted with permission) released today.

Source: October Trends in Existing Home Sales, a presentation from Campbell/Inside Mortgage Finance Monthly Survey on Real Estate Market Conditions.

Thomas Popik, Campbell Surveys Research Director, highlighted several key trends from the survey in October:

  • Investor Purchases of REO Are Declining
  • First-Time Homebuyers Largely Support the Market
  • First-Time Homebuyers Dependent on FHA Financing
  • If FHA Guidelines Get Tougher, Look for Large Impact
  • Short Sale Inventory and Transactions Are Booming
  • First-Time Homebuyer Traffic Is Starting to Ease
  • Financing Methods Click on graph for larger image in new window.

    The first chart shows the type of financing used in October.

    The cash buyers were mostly investors (frequently buying damaged REOs), and the FHA buyers were mostly first time homebuyers.

    The second graph shows the financing breakdown by buyer type.

    Financing by type of buyer According to the survey investors bought 15% of homes in October. About 72% of these purchases were cash.

    Current homeowners bought 38% of homes sold in October and used a mix of financing.

    First-time homebuyers accounted for 47% of purchases and were mostly buying using FHA insured loans.