With cash-paying investors in a full retreat, existing home sales dropped 1.8% in August, according to the National Association of Realtors. "On the positive side, first-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country,” said Lawrence Yun, NAR chief economist.
Due to the growing student debt problem, first-time borrowers are finding it more difficult to afford owning a home. However, while it might be difficult to secure a loan though the bank, a second, closer option is starting to step in and help finance their first home: mom and dad.
Car sales have recovered since the plague of the financial crisis, but the journey has not been as easy for housing. An article in The Wall Street Journal asks the tough question: Should mortgage lending standards ease?