Jobs are growing and interest rates remain low, but tight inventory in many parts of the country continues to drive home prices up, hurting affordability, especially for first-time buyers, who can’t tap home sale proceeds to come up with a down payment. Sellers, meanwhile, are reporting faster sales, with homes averaging 36 days on the market, down from 42 days a year ago.
The median income of first-time home buyers continues to be high enough to qualify for financing, but the margin has been narrowing over the past three years. If the trend continues due largely to escalating home prices, obtaining a mortgage will become much harder for new purchasers.
Source: NAR Research