Asked who would benefit from high house prices if fewer people could afford to buy a home, Renter said: “It’s the people with good credit and with higher-than-average incomes. It’s often people who have a home and therefore have the profits of that home that they can sell and put towards their next house, so it is harder on first timers.”
She pointed at recent data from the National Association of Realtors (NAR) which found that the share of FTBs this past year had fallen to only 26%, representing a new low.
“It’s quite a shift from what we saw over the previous year or so,” Renter told Mortgage Professional America (MPA).
Listings increase
Despite the gloomy news for FTBs, she highlighted the fact that with more listings there will also be “slightly less competition” for the homes that are available on the market in the coming year.
Renter said: “If you’re fortunate enough to live in a less competitive market, you’re going to have a greater chance of getting a home for the budget that you’re able to afford; you’re not going to be bidding against quite as many buyers and there’s going to be fewer homes going for well over list price.”