Lack Of Homes On The Market Affect First Time Home Buyers

Dated: 03/08/2018

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Soaring home prices and the shortage of properties on the market are taking a toll on buyers, particularly first-time buyers.

The share of first-time homeowners fell to just 29% of all existing home buyers in January, according to the most recent National Association of RealtorsĀ® report. That's down from 32% in December and 33% in January 2017.

First-time buyers are usually people with a tighter budget," says realtor.comĀ® Senior Economist, who worries this could further depress home ownership rates down the line. "They're looking for homes on the more affordable end of the market, but that is where the lack of homes is most severe."

Across the country, there were 15.5% fewer existing homes in January selling for $250,000 or less compared with a year ago. Meanwhile, there were 25% more selling for $500,000 or more.

In January, sales of single-family homes, which are often the most sought-after properties, hit 4.76 million. That's a 3.8% fall from December and 4.8% from the same month a year earlier.

Condos and co-ops fared a bit better, as they're generally priced a little lower than single-family homes, with the number of monthly sales rising 1.6% in January to hit about 620,000. But that's down 4.6% from January 2017.

More homes are needed in the system to better level out the playing field for home-owners looking under 200k in homes!

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