Better Days Ahead for First-Time Buyers

First-time home buyers have found themselves in a sellers market, faced with above-average price appreciation and bidding wars due to limited inventories of homes for-sale.

But in the second half of the year, the market is expected to shift toward more of a balance as more sellers – motivated by higher home prices – put their homes on the market, alleviating the inventory shortage. This will help provide buyers with more choices of homes to buy as well as likely soften the speed at which home prices are rising.

For potential first-time home buyers, the housing market will soon be more inviting, writes Jonathan Smoke,®’s chief economist, in recent commentary. “Combined with a temporary reprieve from rising mortgage rates and slightly easier access to credit, buyers should find it easier to purchase a home in the months ahead,” Smoke says.

Source: “Don’t Lose Faith, Would-Be Home Buyers: It Will Get Better,”® (July 23, 2015)

Forget Foreclosures, How about ‘Normal’ Home Sales?

While much of the focus the last few years has been on foreclosures and short sales, some experts say it’s caused some to overlook what’s been happening lately with nondistressed sales.

Some housing surveys have recently shown that when distressed sales are excluded from the picture, the market share of nondistressed homes is at its highest level since August 2008. From January to June, nondistressed sales were up 15 percent year-over-year, according to CoreLogic.

Shrinking inventories of homes for sale and strengthening housing demand from home buyers has helped boost home prices. Home prices have increased 2 percent in June over May, when excluding distressed sales, according to the National Association of REALTORS®. Also, surveys have recently shown that nondistressed listings are staying on the market a lower number of weeks — averaging 11.7 weeks in June compared to 12.7 weeks in May, according to HousingPulse.

Source: “‘Normal’ Home Sales Soar Despite Obstacles,”RISMedia (Aug. 13, 2012)