First-time home buyers are now entering the housing market because housing prices have dropped. “The new buyers are being lured in by home prices that are down about 25% from their peak levels in mid-2006, according to the S&P/Case-Schiller Index. In some markets, prices have dropped even further — slumping around 40% in Phoenix, Miami and Las Vegas. Lower mortgage rates have also helped make real estate more affordable, and as houses languish on the market longer, more homeowners are willing to negotiate. With Congress considering plans to sweeten a tax credit for first-time home buyers, the picture could get even brighter.” Buyers new to the housing market still need a good credit score.
To help out first-time buyers, agents are offering home-buying seminars and workshops, discussing tax breaks for new homebuyers and comparing rent vs. buy financials.