First Time Home Buyers Need Not Be Left Out Of Pricey Real Estate Market 

Washington DC, April 30, 2006

As home prices continue to escalate, many first time home buyers find themselves priced out of the real estate market, unable to afford even the most basic home.

With home prices rising faster than incomes, many potential first time home buyers feel a sense of desperation, sensing the American Dream is moving further and further from their reach. Many find themselves financially dazed and confused, not knowing where to turn for help. 

"The cost of the average home in my town went up by 14% in the past year, while my income only went up 3%," said Jane Owen, 36, of Burlington, North Carolina. "At this rate, I don't think I will ever be able to afford the cost of a home," she said. 

Her comments are echoed across the country. John Beaulieu, 31, a welding technician in Jefferson, Maine sates "It's a catch 22. When interest rates come down making monthly payments more affordable, prices respond by rising rapidly. When prices level off, it is usually because interest rates have risen. Then payments become more expensive. Either way, I can't afford the cost of house nowadays, and I don't know what to do. I wish there was a place I could turn to for help."

While many potential first time home buyers feel a sense of helplessness and desperation, that need not be the case.

"There are literally hundreds of programs to help first time home buyers. Everything from low or no interest loans, to grants - outright free money for those who qualify," said Christine Carter, owner of the website www.firsttime-home-buyer.com.

"In nearly every state there are several state-run programs. And in those few states that do not have a state-sponsored program, the federal programs are still available. While some states run out of funding before the fiscal year is up, such as Kansas right now, most programs have more funds than are used each year because the people that need these programs don't know they exist," she said.