High prices and high mortgage rates are making it hard for many people to get a toehold in the housing market. A new report from the National Association of Realtors says the share of homes sold to first-time buyers dropped to a record low in the last year.
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First-time homebuyers are getting older. The National Association of Realtors had to scrap the photo it was planning to use on the cover of a new report.
Instead, the Realtors went with a photo showing a couple near retirement age — more representative of the average buyer’s age in today’s high-priced market.
The National Association of Realtors scrapped a photo of a young couple for the cover of its annual report on home buyers and went with a photo of an older couple, more representative of the typical buyer today.
National Association of Realtors
First-time buyers accounted for only about one in five homes sold during the 12 months ending in June. That’s a record low and half the share of first-time buyers a generation ago.
“It shows some real problems in the housing market that need to be addressed,” says Jessica Lautz, deputy chief economist for the Realtors’ association.
Eve Burdick and husband Cael are facing challenges in buying their first home due to high prices and existing debt.
Eve Burdick and her husband Cael just celebrated their first wedding anniversary. They’d like to buy a home, but feel priced out of the Minneapolis market.
Eve Burdick
Many young adults like Eve and Cael are struggling to enter the housing market due to high prices and limited inventory.
The overall shortage of homes is compounded by the high price of other necessities, making it hard for first-time buyers to save up for a down payment.
Sasha Skelton and her partner are also facing challenges in buying a home due to high prices and concerns about the job market and economy.
For now, Skelton and her partner have put house-hunting on the back burner but haven’t given up entirely on their dream of owning a home.
