For the buyers that need funding the most for first time home purchases, funding continues to remain an issue.
Because of the previous lax scrutiny by certain lending underwriters, many home buyers were able to secure funds based on inaccurate proof of income, savings, and credit history. Combined with the easy access loan programs with early low interest rates, this made for an easy purchase opportunity for those with real inability to pay over the long term.
With nothing in a property so to speak, many are simply walking away from their purchases. What this leaves, is a large inventory of product with very few qualified buyers.
Now, underwriting scrutiny has really tightened up. Higher credit scores are needed, solid proof of adequate income, and documented savings verification are just part of the necessary paper trail.
For those with average incomes, this provides for a very real challenge.