Letter to the Editor: Bring Back First-Time Buyers
The one point that needs to be hit home in a much bigger way than I have heard or read is this: in the cycle of events that takes place from beginning to end, before a person other than a first-time buyer can buy a house, they need to sell a house. If that person has a $300,000 house to sell, they need a $300,000 buyer. And that $300,000 buyer needs to sell their $225,000 house first in order to buy, and so on and so forth all the way down to the first-time home buyer.
Therefore, creating an incentive for the first-time home buyer to purchase increases the likelihood that the person with the $300,000 house will be able to sell it. But here's the dilemma: the toughest person to get financed in most cases is the first-time home buyer. Until that changes, we are stuck right where we are.
In resolving this issue, we need an incentive that doesn't repeat the past mistake of allowing too many unqualified people into the marketplace and ultimately overheating it. The person who comes up with a solution to this issue will be the hero of our industry.