First-Time Home Buyers Struggle

For the last seven years, a boom in home sales and appreciation has helped to stabilize the nation’s housing market. With the sale of a million units and at least one new home, the U.S. saw almost 15 percent of housing units newly built in 2015. In other words, roughly one out of every three U.S. households built a home in 2015. However, the U.S. housing market that was at its sweet spot for years now seems to be out of sync. The last seven years have seen a glut of housing start-ups and a steeply diminishing supply of homes on the market. With overcapacity finally building into the market, demand for homes has been overwhelmed, leaving all but the most seasoned buyers, who have either spent time in the housing market or have more than a 10-year history in it, out of the equation. The most recent research indicates that, contrary to the forecasts of many economists, the national home price index (HPI) is likely to climb even more as a result of rising mortgage rates.

Home sales have been on a steady climb for more than four years now, but prices have also fallen by about 10 percent since the beginning of 2015. And at least two analysts pointed out this week that a lack of inventory in many U.S. cities may not allow home buyers to go out and buy a home at the rate in the past. But while inventory is indeed an issue in some U.S. cities, the larger problem is that homebuyers are priced out of the market.

While inventory fluctuates throughout the year, according to the annual National Association of Realtors (NAR) Uniform Home Sellers Survey (UHS), the average U.S. home listing on September 1 in 2015, did not sell in the five previous months. That’s less than seven months’ worth of listings. Because of these cyclical declines, homebuyers who wanted to own homes now are priced out of the market. And since there’s less time and still less than one-fifth of all home purchases made between ages 18 to 40, who are not affected by home-price increases, the fact that the average U.S. home price rose from $189,149 in 2010 to $256,182 last year has made it even more difficult for current home buyers to get into the market.

In some cases, they’re even unable to buy a home. See NerdWallet’s State of the Housing Market research Note: Prices in this report refer to median property prices and do not take into account land or other non-cash costs of home ownership. Home prices include all items, including (but are not limited to) property taxes, insurance premiums, maintenance and improvements.

How Many Families Are Owning Homes? Almost 42 million Americans or 40 percent of all adults are homeowners, a growing number that comes in addition to the 8 million Americans in the 15-34 age bracket who are home owners. Another 7 million Americans who purchased their first home between 2006 and 2010 remain homeowners. You can sell Your House Fast in Danbury, we buy houses in danbury ct on a regular basis, we’re local cash home buyers in Danbury ready to make you a great offer.

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