Access to the market through strict and tight credit guidelines as well as competing investors with cash on hand are two of the main reasons we are seeing less first time home buyers on the Downtown San Diego Real Estate market.
According to two recent national survey companies, the National Association of Realtors and Campbell Surveys and Inside Mortgage Finance, shows that real estate agents reports that about 31 to 34.7 percent of buyers at this time are first time home buyers. The normal percentage should lay around 40 percent.
First time home buyers usually choose to go with FHA (Federal Housing Administration) backed loans due to the 3.5 percent down payment requirement but lately these loans have become more costly causing a lot of moderate income first time home buyers to stall the process of moving forward with a purchase of Downtown San Diego Condos. Many may think that due to the low interest rates out there financing have become more affordable but according to the New York Times and their recent article “Fewer First-Time Buyers” today’s market is all about the availability of financing, not the interest rates.
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