Tight credit keeping first-timers from buying homes

The number of first-time buyers has declined in recent months, according to the latest National Association of Realtors’ confidence index.

Normally, first-time buyers make up approximately 40 percent of the existing home sales market. Now, that percentage is in the low thirties.

The change in market participation by first-time buyers seems to be reflective of the current unrealistic level of credit requirements by lending institutions, the survey revealed.

Many Realtors noted in their responses to the survey that banks just aren’t lending to many credit-worthy clients. There is an unrealistic level of risk aversion on the part of many financial institutions, NAR reported.