Categorized | Residential

Young Homebuyers in US Benefit from Bad Market

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As the United States residential real estate market continues to struggle, many young American homebuyers are taking advantage. Although prices have shown signs of recovery, they are still relatively depressed in the grand scheme of things.

 

With foreclosures expected to rise once again in 2012 following the settlement of the most recent robo-signing lawsuit, prices will likely falter for the coming months. Any decrease in pricing would be welcome news to new homebuyers that face a limited budget.

 

The expected increase in the number of foreclosures will likely cause prices across the board to fall. Those selling their houses will have to reduce their price to compete, making the market favorable for buyers.

 

Economists now believe that the housing market is on its way to reaching the bottom, though when it does hit the bottom, it won’t recover immediately. Instead, housing prices will stay at the bottom for an extended period of time before starting to climb back to previous levels.

 

The current state of the market makes it very popular for young first-time homebuyers. Because the vast majority is looking to buy for the long-term, they do not have to worry about resale values in the short-term. Instead, they are focused on affordability, of which is at an all-time high level.

 

Some young first-time homebuyers, though, are buying left out. Despite low rates, there aren’t as many first-time homebuyers as one might think. The reasoning for such a trend is that the banks continue to be incredibly cautious when it comes to approving mortgage loans.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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