According to reports in the Wall Street Journal and the Miami Herald first time home buyers are accounting for a large portion of the recent boost in existing home sales. The reports cite lower home prices and the provision in the Obama stimulus plan that gives first time home buyers an $8,000 credit.
Indeed, on a conference call following HomeGain’s release of its survey of Realtors on Home Values, HomeGain member Jeffrey Bastress of Starpoint Realty in Massachusettes cited that he had recently received numerous offers from first time home buyers citing the $8,000 credit as a reason for their interest in purchasing a home.
Andrew Duncan of Keller Williams of Tampa also cited the new tax incentives, lower home prices and great interest rates as driving new home buyers to make their first purchases.
Could it be however, the reason that first time home buyers are making up a good portion of existing home sales is that they haven’t been burned yet?