First Time Homebuyers Spur New England Housing Market in First Quarter of 2009

Natick, MA – April 15, 2009 – Affordable prices, low interest rates, and the $8,000 tax credit spark renewed home sales activity in New England during the first quarter of 2009, an indication that the housing market may have bottomed out and the seeds of recovery are beginning to take hold, according to the 2009 New England First Time Homebuyer Report, presented by RE/MAX of New England.

The increase mirrors recent improvements in the sales of condos and single family homes across the country. The National Association of REALTORS® (NAR) reported that existing home sales rose 5.1% in February, the largest single-month increase since July 2003. According to the RE/MAX National Housing Report, many of New England’s major hubs are surpassing the national increase.

Transactions in Augusta, ME are up 6.21%, Hartford, CT is up 18.37%, Manchester, NH transactions are up 17.47%, and Providence, RI, one of New England’s hardest hit states, is up 7.30% versus the prior month. The NAR reported that first-time buyers purchased more than 50% of the existing home sales in February.

Jay Hummer, Executive Vice President of RE/MAX of New England said: “The combination of FHA loans, the $8,000 federal tax credit geared specifically toward first time home buyers, his-torically low interest rates, and the value of real estate in today’s economy, are drawing consum-ers in large numbers.”

This renewed activity spurred RE/MAX of New England to analyze first time home buyer atti-tudes and behaviors a little more closely. A qualitative exploratory of first-time home buyers was conducted in the greater Boston market in which the buyers provided direct feedback through focus groups and telephone interviews.

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Respondents generally understood that the large inventory of affordable homes has created a buyer’s market with lower prices and lower interest rates. However, a general lack of knowledge about the home buying process and the tax incentives available for first time home buyers, cou-pled with a fear of job security in the current economy, created anxiety and kept a certain segment of potential buyers on the sidelines. In addition, many are still hedging on whether the market has in fact hit bottom.

Said Hummer: “Take a look at the inventory today versus a year ago. In many cases it’s doubled while prices are at 2003 levels; now is the time to buy.”

Please refer to the 2009 New England First Time Homebuyer Report or the RE/MAX of New England blog at www.remax-newengland.com/uploads/remax-fth-report-2009.pdf for a complete view of homebuyer preferences in New England.

About RE/MAX of New England:

RE/MAX of New England is affiliated with RE/MAX International. Since its inception in 1986, RE/MAX of New England has grown to over 250 offices with 3,000 sales associates throughout Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, providing residential and commercial real estate, as well as relocation and referral services. The RE/MAX website is www.remax.com.