As Housing Markets Recover, Wall Street Beats Families To Homes

PHOENIX -- By the values that have long governed American housing, Megan and Danny Gilbertson are precisely the sorts of people who are supposed to now be buying a home.

They have good credit, steady jobs and decades worth of earning potential ahead of them, but not a lot of money for a down payment. Recently married, they are eager to leave a cramped apartment for a home of their own in a revitalized neighborhood here, a few miles from downtown and recently populated with coffee shops, hip restaurants and young parents pushing strollers.