First-time homebuyers hunting for bargains

03.27.09
By Nicholas Storie

With home prices well off their 2008 levels, a number of first-time buyers are taking out home loans and scooping up discounted real estate.

According to February data from the National Association of Realtors, existing-home sales ticked up last month although generally house-hunting activity remains "soft."

The group said that the national median existing-home price for all property types was down over 15 percent from the same time last year.

First-time homebuyers made up nearly half of all home sales in February and most of the properties sold last month would be considered lower price range options, according to National Association of Realtors data.

"Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February," said the realty group's chief economist Lawrence Yun.

Some mortgage brokers are reporting an increase in property search activity and said there was a noticeable uptick in interest after the first-time homebuyer tax credits were announced.

The federal government announced earlier this year that first-time homebuyers could be eligible for an $8,000 tax credit on either 2008 or 2009 tax return filings.

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Moving boxes are being packed as existing-home sales rise