Just the Facts (First time home buyer)

There are definitely some positive signs in the existing home sales.
In 3/09 existing home sales increased slightly, in comparison to market expectations of a slight decrease. The month's supply has been relatively even over the past 15+ months. The housing market appears to be stabilizing.

With a low housing affordability index of 14.3% in 2007 to a higher affordability of almost 45% there appears to be a lot more activity among first time home buyers.
A steady market has about 37% of all home buyers are first time home buyers. The current rate is almost 35%. Also, with rental rates almost matching mortgage payments more renters are jumping into the housing market.A first time home buyer can buy a detached home in San Diego for $250,000 using a 3.5% down FHA loan and pay either the same or a little bit more then his or her rent payment. This is causing many buyers to ask themselves, "why rent when I can buy". This used to be the saying before the affordability index tanked.

Interest Rates are at an all time low for 30 year fixed rates. Along with the $8000 tax credit this is causing many first time home buyers to get into the market. Also, FHA loans only requiring 3.5% down as well as attractive VA loans are another factor for an increase in the housing market.