First-time buyers entering the market today have to move fast if and when they find a suitable home, as many market conditions heavily favor sellers.
The typical price for an existing home continues to increase, and much of the new construction for single-family homes is aimed toward the luxury end of the market, so that builders can more easily recoup the growing cost of construction. The New York Times answers three frequently asked questions by buyers: what mortgage rates are, how buyers can increase their chances of getting the home they want, and if a buyer should put down 20 percent if they can afford it.
Rising home prices and a slim supply of starter homes in many areas are making this spring a challenging one for first-time buyers. The typical price of an existing home in March was up nearly 6 percent YOY, according to the National Association of Realtors. Plus, homes sell quickly when they come on the market. Seasonal demand is increasing as usual, but buyers are finding that there is a lack of new listings. “The starter house is nearly missing in some markets,” said Jessica Lautz, NAR's managing director of survey research and communication.