1st-Time Buyers Account for 51% of Home Sales in L.A.
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First-time home buyers accounted for nearly half of all home sales in the United States and slightly more than half of the home sales in Los Angeles during 1992, according to an annual survey of Chicago Title & Trust Family of Title Insurers.
The percentages of first-time buyers are the highest since the company initiated the survey in 1976.
In Los Angeles, 51% of the homes were purchased by first-time buyers at an average price of $227,100; the national average for first-time buyers was $142,400. In 1991, 42.4% of the L.A. buyers were first-timers, and the average price of homes purchased by them was $201,500.
Despite the fact that interest rates were at their lowest levels in 20 years, the percentage of buyers choosing adjustable-rate mortgages rose from 16.3% in 1991 to 21.6% last year, said John Pfister, Chicago Title & Trust’s vice president and market research manager.
“It appears that buyers in 1992 were less concerned about the possibility of rising interest rates any time soon. The relatively lower cost of adjustable-rate financing probably influenced some buyers as well,” he said.
More than 4 of every 10 buyers, or 42.2%, also made a down payment of 10% or less in 1992 in contrast with 39% in 1991, the survey revealed.
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