The Motley Fool
Over the last 15 years, the real estate market for first-time homebuyers has been fairly strong. Before the financial crisis, lending standards were such that first-time buyers had little problem obtaining the financing they needed to move into a home of their own. After the crisis, the Obama first-time homebuyer tax credit plus dramatically lower prices put first-time buyers in an enviable position in the market.
Today’s market is a different story. The current generation of first-time homebuyers is ill prepared for the financial reality of buying a home, faces serious affordability problems because of rapidly appreciating home prices, and is struggling to obtain financing because of tight lending standards at banks.