Investors with plenty of money are getting credit for any upswing in home sales rather than the important first-time home buyer. With homes available at incredibly low prices thanks to foreclosures, anyone with cash and a little patience can swoop in and find a great deal.
Even when first-time buyers can qualify with the stricter loan standards, they are not jumping in to the housing market according to MSNBC,
Many potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further. High unemployment is also deterring buyers. Job growth, while expected to pick up this year, will not likely raise home sales to healthier levels.
The article said first-time buyers have dropped to their lowest level in two years and in January foreclosed homes were 37 percent of residential real estate sales.
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