If you’re a first-time homebuyer and expecting good news about the market any time soon, prepare to be disappointed. New data suggests that first time homebuyers are paying more than anyone else before.
Here’s Five Fast Facts About First Time Home Buyer Woes:
- 🏠 Sky High - The average interest rate on a fixed 30-year mortgage has hit 7.1%, the first time rates have broken the 7% barrier this year.
- 🏡 Big Bucks - The median asking price has jumped to a staggering $415,925 for the four weeks that ended April 21.
- 😱 Actual Retail Price - The median sale price, or what you actually pay for a property was $383,725 for that same time period in April. That’s also a record.
- 🏚️ Puzzling - Numbers like this are confusing, since there’s more homes available than last year. In fact, new listings are up 10.2% year over year. Experts say that number may drop, since high interest rates are again causing current homeowners to stay put since they have lower interest rates than what are currently available.
- 🚑 Long Way Off - There’s no end in sight, according to market observers, due to strong demand and a strong economy. Government programs or policy may be the only way the market stabilizes.
🔥Bottom line: Welcome to the new reality of homeownership. The solutions are troubling: a poor economy hurts everyone and government intervention could get particularly messy for everyone involved. Hopefully an expert with a bigger brain can come up with something soon.
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