New research shows that first-time home buyers feel better about moving into smaller, less expensive homes.
According to the National Association of Home Builders
, first-time buyers are moving into homes with an average value of approximately $184,000 and approximately 1,900 square feet of space. By contrast, people who were buying at least their second home purchased properties valued at nearly $300,000 with more than 2,500 square feet of living space.
Because first-time buyers made up more than 40 percent of home sales last year, the NAHB says that builders have taken notice, and are working to accommodate demand for smaller homes.
"Builders are increasingly gearing their homes to the needs of first-time buyers, and we expect the trend to continue in the period ahead as the economy begins generating more jobs and more people in their 20s form households," said Bob Jones, chairman of NAHB.
However, due to the expiration of the first-time homebuyer credit, first-time buyers are becoming more hesitant in their relocation plans. A recent report by Campbell Surveys
found that first-time homebuyer traffic among home listings had fallen more than 53 percent since April.