The extreme low home prices are attractive to first time homebuyers as well as investors. Investors however, are coming to the table armed with cash, making purchases difficult for first time homebuyers looking to finance.

Here in Florida home prices have declined drastically making it a perfect target for the real estate battle on homes priced below $300,000. Financing has become more difficult over the past year, giving cash buyers an upper hand in the battle. A survey conducted by the trade association revealed that nearly 22% of all previously owned homes that were sold nationally in December were purchased with cash. This marks the highest level since spring of 2009.

According the Jed Smith, researcher for the National Association of Realtors (NAR), “Even though a first-time buyer may be offering the same price as an investor, or a higher price, the investor has the edge, the investor may actually pay less, but it’s cash, right now.”