Historically low mortgage rates continue to drive the market, and in many areas, properties favored by entry-level buyers are still generating bidding wars.

We are going very strongly after the entry-level buyer.

The entry-level buyer, might have to make do with a form-fitting neoprene jacket from the Armani Jeans line, for $250.

Kia Motors of South Korea is coming to America, bearing new models and a strategy intended to lure entry-level buyers.

In 1979, Yashica introduced a new inexpensive 35mm consumer SLR, the FX-3, intended for entry-level buyers.

"Because the economy is so good, due to Wall Street, Silicon Alley and the entertainment sectors, there's a lot of entry-level younger buyers moving into the market," he said.

She also envisions drawing "entry-level buyers, pied-à-terre purchasers and college students whose parents are looking for a way to house them while making good investments."

"Ten years ago, entry-level buyers were waitresses and gas station attendants," she added.

"Homes for the entry-level buyer are selling fastest, and that is where we see the largest price increases," Mr. Otteau said.

Ed Piotrowski: A3's price tag is out of reach for entry-level buyers who might be looking for a compact hatch.