First-Time Home Buyers Are in a Great Position

Real estate has been a tough topic lately.  In recent years many people bought homes which have since decreased in value.  Others got caught up in the real estate trend of borrowing more than they could actually afford with putting little or no money down, before they realized that they actually couldn’t afford the home they purchased.  A bleak picture has been at hand indeed, with home prices falling, people losing equity and many unable to pay their mortgages any more.  Bleaker still is the fact that borrowing money has become increasingly more difficult.  There is good news however.

The good news is for first-time home buyers.  According to a recent article by Mary Pilon in the Wall Street Journal “The housing bust is creating a new group of winners: first-time home buyers” and “first-time home buyers made up 41% of all buyers at the end of 2008, up from 36% in 2006, according to a recent survey from the National Association of Realtors.”  The incentives for first-time home buyers are better than ever.  With home values at dropping dramatically, mortgage rates at historic lows and an $8,000 tax credit, it’s hard for first-time home buyers not to take the plunge.

In the same article Pilon states “The housing bust is creating a new group of winners: first-time home buyers. People who sat on the sidelines — often watching wistfully as their friends became homeowners — are suddenly in a position to grab some great deals. Indeed, first-time home buyers made up 41% of all buyers at the end of 2008, up from 36% in 2006, according to a recent survey from the National Association of Realtors.”  First-time home buyers rejoice, now is your time.  Real estate values are not going to stay down forever and with the incentives at hand first-time home buyers stand to come out ahead when all is said and done.