First-time home buyers are making up lower shares of buying this spring. This may be due to the increase of the monthly payment for an entry-level home. First time home buyers comprised 30% of existing-home sales in March, which is down from 32% a year ago, according to data from the National Association of REALTORS®.
With a nationwide increase of 9%, monthly housing cost for entry-level buyers increases $136 to $1,641. This causes buyers to compromise on size, maybe even consider buying a condo or mobile home instead of a single-family house.
“First-time buyers continue to make up an underperforming share of the market because there are simply not enough homes for sale in their price range,” NAR President Elizabeth Mendenhall said in a statement. “Supply conditions improve in higher-up price brackets, which means those trading up should see considerable interest in their home, as well as more listings to choose from during their own search.”
The table below from John Burns Real Estate Consulting shows monthly housing costs for an entry-level home in March 2018 as well as the increase over the last year. Source: “Challenges Mount for First-Time Buyers,” John Burns Real Estate Consulting (April 20, 2018)
Homelessness has shot up in California and elsewhere on the West Coast over the past two years, a federal report said Wednesday, as rising rents and other housing pressures forced more people from the margins onto the street.
California’s homeless population went up 14% to 134,278 — the most by far of any state, and representing 31 percent of all the individual homeless people in the U.S., according to the federal Department of Housing and Urban Development.