Certain trends in the housing market suggest that things could get a whole lot worse before they get better for a lot of potential homebuyers – especially first-time homebuyers. If you are looking to purchase a home, whether it’s for the first time or you are a previous homeowner, you need to be aware of what is going on with the housing market right now.
The recent recession and housing crisis presented a problem for people who already owned homes. Many of these individuals made the mistake of purchasing a home with a low down payment and then later realizing that they could not actually afford the house. The current housing crisis is quite different, with home prices now so high that many prospective homebuyers simply can’t afford them. The end result is that there are not enough houses available at prices deemed reasonable enough for the people looking to buy.
The state of the housing market has resulted in a surge in housing prices, since supply can’t meet demand, in addition to a surge in the number of rentals. Michelle Meyer, an economic and housing expert who serves as the senior U.S. economist for Bank of America Merrill Lynch, noted that the “tight” housing market is a product of the limited supply of affordable homes, which “has kept upward pressure on home prices and rents, stretching affordability and making it more challenging to achieve homeownership.”
The Bank of America Homebuyer Insights Report, a study that explores the attitudes, behaviors and preferences of modern homebuyers in markets that include New York and Los Angeles, found that a large percentage of first-time homebuyers are pushing back their initial home purchases due to “affordability concerns.”
For additional information on the state of the current housing market, view the Yahoo.com article, “This Chart Explains Everything That’s Wrong with the Housing Market.”
If you are in the market to buy a home or sell a home in New Jersey, Joel R. Spivack, Esq., is an experienced and knowledgeable real estate attorney who can assist you with the home buying process. Contact Mr. Spivack today to schedule a free consultation and explore your options.