According to statistics, in a normal market, about 40% of the sales are first time buyers. About 27% of sales at this time are first time buyers. This reduction in first time buyers is due to several factors.
New QRM standards imposed by the Federal government are definitely having an impact on first time buyers. Credit score requirements are up and so is the reqirement for down payment money.
Additionally, new home construction is not up to "pre-bubble" production and mortgage default rates have been at historic lows in the last few years. Is it time to ease up on mortgage qualification standards instead of tightening the noose? Will builders have the confidence to build when loan standards are so tight?
With interest rates still at historic lows and home pricing set to rise it seems that there is nothing to fear but fear itself!
Home ownership has always been a rewarding investment, as well as a wonderful way to have control of your life.
If you would like to buy or sell a home, call me today. I will treat your transaction as if it were my own.
Thank you for visiting my blog,
Carla Brooks
703-577-4960
Ps all photos are a courtesy of free digital photos
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