The National Association of Realtors® Housing Opportunities and Market Experience (HOME) survey showed home price growth along with tight supply. The NAR HOME Survey showed that confidence in buying right now is going down, probably because of these high prices with low supply.
“This summer’s historically low mortgage rates injected some additional demand into the market, but the dearth of homes for sale continues to keep a lid on sales but not prices,” said Lawrence Yun, chief economist of NAR. “Given the stiff competition and limited homes available at the lower end of the market, it’s not surprising at all that those under the age of 34 and in the West are the least confident about it being a good time to buy.”
Yun added, “Very affordable mortgage rates and strong job gains among young adults should be translating to a higher rate of homeownership. It’s not, and as a result, sales to first-time buyers remain stuck below a third of all sales.”
The survey indicated that many younger consumers do not know about financing options and downpayment plans, which could be discouraging them from entering the market.
“It’s possible some of the hesitation about buying right now among young adults is from them not realizing there are mortgage financing options available that do not require a 20 percent downpayment, which would be north of $100,000 in some expensive areas in the country,” says Yun. “In fact, most first-time buyers put down much less. In the 35-year history of NAR’s Profile of Home Buyers and Sellers, the average median downpayment has been 5 percent for first-time buyers.”
Most current homeowners surveyed said they believe now is a good time to sell. 91 percent of those surveyed believe prices will stay the same or rise in their area. Full results of the survey can be found here.
If you are among those like the many from the NAR HOME survey who believe now is a good time to sell or buy your Miami home, contact RE/MAX Paradise today and our amazing agents can help you.