Despite the housing market’s recovery, first-time buyers are struggling to get access to affordable housing. The difficulty of getting a mortgage is a primary reason for this, as banks have tightened their lending standards to avoid another housing bubble. Most first-time buyers save a large portion of their income when they are young, often a decade or more, which is not enough to buy a home in many markets. Some younger Americans are also waiting to buy a home until they have a better job or a spouse, which also keeps them from getting a mortgage.’
According to the National Association of Realtors: “First-time buyers are still struggling to enter the market and represented 27% of buyers in May, down from 31% a year ago..”
One of the most reliable indicators of the health of the housing market is the number of homes that are sold each month. Pending home sales, which are sales that have not yet closed, are one indicator of the health of the housing market. In May, the number of pending sales dropped 10% year over year, the largest decline since May 2020. This is primarily due to rising mortgage rates, which have prevented more buyers from entering the market.’
According to RedFin Chief Economist Daryl Fairweather After years of a wild housing market, it’s finally cooling down. She advises homebuyers to explore different mortgage lenders and sellers not to overprice their home.
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