Once again, much of the nation is experiencing an influx of young, local homebuyers that are attracted by the declining values in the housing market. This article refers specifically to the Reno, NV area but I am seeing the same thing in Maricopa AZ.
One interesting point the author brings up is that the lack of the $8,000 tax incentive can be more than made up in the long term by a price that has dropped quite a bit more than that amount since the credit was halted. Though this may very well be true in many markets, the immediate benefit of a tax credit is much more desirable to most buyers in this demographic.
Regardless, I am definitely seeing an increase in first time home buyers and this is certainly due to the fact that they truly can own for less than they pay for rent in most cases. That being said, I think that many former owners have lost faith in a home being an investment and are more than content to rent at this point in time.
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