Home buyers Face Tightened Credit Requirements - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Home buyers Face Tightened Credit Requirements

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Kennewick -- A new study says Washington's housing market is slowing, but prices remain high, making it harder for for renters to become first-time home owners.  That's according to statistics by the Washington Center for Real Estate Research at Washington State University in Pullman.

There were 26-thousand-720 homes sold statewide during the first three months of this year.  That's 9-point-2 percent drop from the same quarter in 2006.

While home sales are slowing, the median price of a house increased 7-point-4 percent over last year.  That compares to a nearly two percent decline in the national median price for a single-family home during the first quarter.

In the Tri-Cities, Yakima, and nationwide, a new trend has surfaced.  Hopeful homebuyers with bad or no credit will face a struggle when seeking financing. 

Brian Nott with Vanguard Mortgage & Title in Kennewick, says lenders have in the recent past extended credit to those with marginal scores, and many have defaulted.  This, he said, has created what he calls a "sub prime fiasco."  And the backlash is now being felt in the housing marketplace.

As far as home prices go, Nott says costs are stable for homes in the Tri-Cities.