The NATIONAL ASSOCIATION OF REALTORS® says more than 50 percent of March's home sales were tied to first-time buyers, many of whom snapped up foreclosed homes and other distressed properties.
Experts believe getting first-time buyers off the sidelines to take advantage of historically low interest rates and federal tax credits will reduce the glut of homes on the market and spark a recovery. Some point out that first-time buyers are helping to revitalize communities in Florida, California, and other states hit hard by foreclosures.
However, distressed properties often sell for 20 percent less than traditional properties, and the increase in lower-end sales is driving down the national median home price.
Source: USA Today, Stephanie Armour (04/30/09)
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