Where will the next pool of buyers come from?

That is the question of the season....

We had the vultures swoop in during the market's lows, then we had first time home buyers drive purchases, and most recently those looking to upgrade to larger homes have propelled the market forward, both in terms of volume and prices. Could it be that first time buyers may take the helm again next year?

If the rental market maintains its current strength through next year (landlord rental rates will inch up again), another wave of first time buyers is then a distinct possibility. This could expecially be the case of the renter runs a Buy vs. Cost analysis using current or slightly lower mortgage rates.

There is no question that when rents go up the move is to buy. Get an appreciating asset along with a tax deduction as opposed to throwing money away every month.