More first-time buyers getting a leg up from family

Moving into a new home continues to be a goal for many first-time buyers, and they're using any means they can find to afford it.

In fact, a report from the National Association of Realtors showed that an increasing number of first-time buyers sought financial help from their families when looking to put money down for a new home. This year, a record percentage of home sales - 50 percent - were attributed to those who were purchasing a home for the first time, up from 47 percent in last year's profile on homebuyers and sellers.

Additionally, the report found that while 74 percent of those buyers used their own savings to pay for the down payment, 27 percent received a gift from a friend or family member to cover the upfront cost. That was up from 22 percent a year ago, and experts say it could be that more family members today are willing to help their loved ones with the costs of moving into a new home.

"It appears more parents were motivated to help their children to take advantage of the homebuyer tax credit and very favorable affordability conditions," said Paul Bishop, NAR vice president of research.

Affordable homebuying conditions persist today even without the presence of the tax credit. The latest report from Freddie Mac showed that the average rate on a 30-year fixed-rate mortgage was 4.24 percent, down from 4.98 percent last year at this time.
 

More News