“One can say that we are having a nationwide housing cost problem,” says Lawrence Yun, the chief economist for the National Association of REALTORS®, in a new interview with The Huffington Post. Housing’s affordability problem remains a barrier particularly for first-time buyers wanting to enter the market.
Indeed, the latest existing home sales report shows that the share of first-time home buyers was 28 percent in July, down from 30 percent in June.
The lack of available housing is one cause of these booming prices, with current home building activity at only half of the normal level.
In the recent REALTORS® Confidence Index Survey, REALTORS® report that homes are increasingly becoming unaffordable and that sellers are reluctant to move because they can’t find affordable homes.
Sources: “Real Estate Has Become Unaffordable,” The Huffington Post (Sept. 9, 2015) and “Sales to First-Time Buyers: 28 Percent of Sales in July 2015,” Economist Outlook blog (Sep. 9, 2015)