Is the housing market making a comeback after its fall or what is going on with that market? This is a question that is on a lot of people’s minds, especially investors. 

The housing market crashed with 6 years of declines. Home were losing value every day for six years. No new homes were being constructed and the homes that did exist and were empty stayed that way, as they could not be sold. However the turn has come and home prices, sales and construction have increased in the past year suggesting a turn around. However, if we take a closer look at the numbers we will see that there are extraordinary conditions involved. 

A lot of these numbers are coming from investors. The housing investors are convinced that the market has bottomed out, so they are buying houses and paying cash for them. These investors are picking up houses that are in crisis or have been foreclosed on. They are getting them at bargain prices and usually paying cash for them. With this activity of the investors buying out these low priced homes and paying cash for them, it does cause a problem with first time home buyers. These first time home buyers are at a disadvantage as they are unable to get loans for these homes and have to compete with investors that have a track record already. Prices on homes are low as well as interest rates, however the traditional home buyer is having quite a few problems being able to purchase these homes. 

Mortgages are hard to get as banks want a twenty percent down payment and only want to lend to people who already have a track record. Home owners who are upside down in their home cannot come up with that down payment. First time home buyers would have to save for years to get that down payment as well. People who were able to get mortgages years ago are not able to get them today. People who are not investors are not able to purchase these homes through traditional means due to the