CNBC – Make It
Last year proved challenging for homebuyers, with only 28% of those planning to purchase a home successfully doing so, according to a new survey by NerdWallet.
Rising home prices, selected by 18% of respondents, was the most-cited challenge. That’s perhaps not surprising considering prices have surged 33% since 2020, further squeezing buyers already contending with mortgage rates that have doubled to over 6% in that time.
These challenges contributed to the sharp decline in first-time buyers, who made up just 24% of home purchases last year — the smallest share since the National Association of REALTORS® began tracking the data in 1981.
A lack of affordability is also why 2024 was one of the most lackluster years for home sales in decades, according to NAR data. The issue hasn’t been a lack of demand, but rather the rising costs that have priced out countless would-be buyers who can no longer afford to finance a median-priced home.