Return of the First-time Buyer?

According to Stephen Kim of Barclays, first-time home buyers may be making a resurgence, an area that has remained soft for quite some time. Kim cites the growing number of new jobs that have been created over the last several years as a prime factor. He also points out that credit has loosed somewhat with more lenders now accepting borrowers in the 600-700 FICO range. Finally, he points out that buying remains 20 percent cheaper than renting and young would-be owners will be prompted to buy now rather than wait until prices rise. However, Kim stressed that student loan debt remains a huge obstacle for many first-time hopefuls.

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