…Even though housing prices have come down, so too have incomes across the country, and in many areas, it’s still been difficult getting an offer accepted.  With so many cash investors stepping into the market again, they have squeezed out many other buyers, and are getting properties for less than market value since sellers tend to prefer to work with a quick closing cash buyer than a buyer with a loan.

This is an issue the Center for Housing Policy (CHP) has been trying to warn the industry about.  Jeffrey Lubell, the executive director for CHP states “In many communities, there is a major disconnect between the income families have and the costs of buying a home…  If you can’t afford a home right now, it’s not going to get better.”  This will lead to further slides in the housing market, and more REOs.