First-time home buying hits lowest level in nearly three decades

[Warpy]

5. I think it's the last factor more than the first two

The foreclosures and short sales appealed more to investors. House buying families didn't want the insecurity of waiting 3 months to see if they had managed to bid the right amount on a short sale and they didn't want the disaster that often existed in a foreclosed house.

I think there is a tremendous amount of demand out there and that house buying will explode as soon as wages are raised to a livable level, with or without student debt to pay off. The student debt will only ensure that both spouses have to go out to work, hoping doting grandparents come through when the baby sitters flake out.

Either wages will rise or all those CDOs issued on "sure thing" student loan debt will cause another banking bubble to burst and we'll be at Square One again.