The national housing market continues to recover, indicated by a balanced supply of inventory and increasing home prices across the country. NAR President Moe Veissi states, “The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices.”
However, rising demand has led to tight supplies of affordable homes for first-time home buyers, who now only represent 32% of purchasers. NAR Chief Economist Lawrence Yun claims “a healthy market share of first-time buyers would be about 40%, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry-level activity.”
Regardless, with the market heating up and mortgage rates continuing to hit record-lows, now is one of the most favorable times in history to buy a home.