Declining home prices means that first time home buyers can now get more elbow room for their buck.  During the boom, and rising home prices, many first time homebuyers were getting into small starter homes, but not now!  Of course the mortgage hurdle is set higher, but once over this, they are now getting larger homes for the same dollar that bought smaller homes just a couple years ago.

Here is an article in the Wall Street Journal concerning first time home market and some of its challenges. 

Buying a First Home

By RACHEL LOUISE ENSIGN

Last fall, Gretchen Steinmiller Torres and her husband, Dustin, bought their first place, a $204,000, four-bedroom, 2½-bath house in the suburbs of Columbus, Ohio -- even though they didn't have immediate plans to use much of the space.

"We have a baby room in our house with no baby," says Ms. Torres, 29 years old, adding that the newly constructed home is in a good school district. Now they just have to grow into it.

Forget the starter home.

Read the entire article here