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Less than one in twelve home buyers bought a new home in the last two years

Dennis Norman, St Louis Investments,Over the past two years, 6.8 million homes were sold but only 8 percent of those homes, or just over 500,000, were new homes according the National Association of Home Builders (NAHB).  This is down dramatically, less than half in fact, from what it was even in 2009, another bad year for the new home industry however one in which 17 percent of all homes sold were new homes (see graph below).

Almost half of the home buyers (forty-six percent) during the past two years were first time home buyers, a big increase from 35 percent in 2005 and 2007 and even higher than in 2009, in the middle of the homebuyer tax credit when first time home buyers made up 41 percent of the market.

new home sales versus existing home sales

Source: NAHB