Credit standards have tightened in the last two years. As a result, the portion of the home financed has changed however it is not entirely intuitive how it changed.
In 2005, the typical repeat buyer financed 79 percent of their recent home purchase. In 2009, the typical repeat buyer financed 85 percent of their recent home purchase.
First-time buyers had a slight shift to financing less of their home purchase. In 2005, the typical first-time buyer financed 98 percent of their home purchase. In 2009, 96 percent of the home purchase was financed by first-time buyers.
Among all buyers, the percent of home financed was stable at 91 percent for 2008, 2007, and 2006, but rose to 92 percent in 2009. In 2005 among all recent home buyers 87 percent of the home was financed.
Copyright National Association of REALTORS®. Reprinted with permission