WASHINGTON â€“ June 25, 2012 â€“ First-time homebuyers who expect their choice of properties are encountering a great deal of competition from cash buyers and investors, especially for lower-priced dwellings in foreclosure-ravaged markets, or homes in areas where the economy is picking up steam.
The National Association of Realtors reports that first-time buyers accounted for just 35 percent of activity in April compared to 40 to 45 percent when the market is healthier â€“ and the number of cash buyers jumped to almost 33 percent from under 10 percent before the downturn.
Borrowers with 20 percent downpayments for conventional mortgages are losing bidding wars, but buyers relying on low-downpayment FHA loans have an even harder time, as sellers balk at the extra home repairs often required for FHA loans.
Source: USA Today (06/20/12) P. 1A; Schmit, Julie
Foreign buyers of residential properties come from around the world. According to the 2012 Profile of International Home Buying Activity
, foreign buyers of U.S. residential properties are concentrated in 10 countries. Canada, China, Mexico, India, and the U.K were reported as having the most international buyers, with Canada and China as the fastest-growing home countries.