When the global pandemic turned our world upside down, few people expected the real estate and housing market to take a path that it actually took. It would be reasonable to assume that prices would face downward pressure, but exactly the opposite happened, and the market has been on fire since early 2020. This makes it quite difficult for people who are trying to buy their first dwelling find a reasonable price for their targets, but the fact is that it is exactly this drive that fuels the market towards the new high pricing points.
- The increase in mortgage rates has had less an impact on first-time homebuyers than on other homebuyers.
- The strong labor market has boosted the number of 25- to 44-year-olds with earnings of $75,000 or more.
- New homes being built have been larger and higher-priced rather than entry-level.
“While first-time homebuyer demand is driving the market forward, the lack of supply of affordable entry-level homes remains a significant obstacle.”