This spring, first-time buyers may struggle to find a house. The number of homes in the lower-price market is severely limited. Inventory fell 8.2 percent in January from a year earlier for properties priced below $250,000, according to data from the National Association of REALTORS®.
“Affordability is a challenge this spring,” says Doug Duncan, Fannie Mae’s chief economist. Potential home buyers “would have gotten their credit in shape and they’ll have a job. But they will be frustrated because, in their market, there simply won’t be affordable homes.”
“Already facing affordability issues, this competition at the entry-level market only adds to the roadblocks slowing first-time buyers,” says Lawrence Yun, NAR’s chief economist.
Source: “First-Time House Hunters Lose in Busy U.S. Homebuying Season,” Bloomberg News (March 16, 2016)