For much of the year, real estate has been a seller’s market due to limited inventory. While it is good news for homeowners, it’s been a real challenge for first time buyers. Bidding wars and exorbitant prices have halted many new buyers from making moves. As a result, buyers have had to compromise on their purchases or hold out entirely. A recent survey shows that 20% of first time buyers were prepared to go without essential features such as electricity and plumbing. Owning a property has become harder than ever and for many buyers it’s simply out of reach.
Thankfully, that’s expected to change as the market moves towards equilibrium. A temporary reprieve from mortgage rates and easier access to credit will make it easier for buyers to purchase homes in the coming months. The U.S. Treasury has also stepped in, providing $7.8 million in funds to 18 states in order to assist struggling home buyers. Named the Hardest Hit Fund, the fund targets new buyers who haven’t owned a home in three years.
Limited inventory is also being remedied as listings have grown an average of 4.5% over the last three months. New construction is also on the rise, with single family permits up 9% from last year. This will be a major win for buyers, who stated in June that their number one obstacle was not finding a home that suited their needs. Houses are also projected to sit longer on the market.
All in all, the second half of the year looks much more hopeful for first-time buyers. While it still won’t be a cakewalk to purchase a home, the odds will be much more even.
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