Monday, March 14, 2011
First-time Buyers Fade From Market
A report out today from Capital Economics says that cash buyers and investors together have driven 70% of the increase in existing home sales seen since last July, while first-time buyers have been responsible for just 6%.
I think the biggest drops in the market are over but the recovery might be a year or more away. The interest rate picture is still cloudy and we haven't had enough growth to make people confident that their jobs are going to be there. Still, now is a good time to look for bargains. A lot of row houses in our area are cheap and can be rented for more than the cost buying. I don't expect that condition to exist forever.