Although the real estate market continues to improve, the percentage of first time buyers in the market remains below the historic average, according to the National Association of Realtors.
NAR's latest Realtors Confidence Index survey showed approximately 32 percent of Realtors reported completing a sale with a first time buyer. That percentage is up slightly from August but still below the historic average of 40 percent.
While 11.4 percent of Realtors reported completing a cash sale with first time buyers, the majority said that they used a mortgage to purchase their home.
The Association said that there are a few reasons why the percentage of first time buyers remains below average including difficulty obtaining a mortgage.
According to a survey of loan officers completed by the Federal Reserve, banks have eased standards on business and auto loans, as well as credit cards, but residential real estate loans still have strict lending standards.
These tight standards have caused many potential buyers to be left out of the market. Those who have been able to secure financing have been able to take advantage of record low rates for much of 2012.
