The US housing market is undergoing unprecedented changes. Owing to this, it has become quite challenging for homebuyers to strike a home buying deal. Especially, first-time homebuyers are really feeling the pressure to find a suitable home for themselves.
Many homebuyers complain that they saved money for buying a home this Spring. Low interest rates were the major factor that prompted them to make this decision. However, the American housing market suddenly started becoming hot.
As a result, it made it really difficult to afford to buy a new home. Last year, people stayed at their homes, making them realize the need to buy a home instead of living on rent.
But when they approached real estate agents to buy their homes, the prices shoot up beyond expected limits. And it really created a challenging situation for people to go for a house purchase.
Less Availability But High Demand
In the US real estate market, the prices of houses are increasing exorbitantly. But the availability of houses is not good. Hence, first-time homebuyers are really feeling the heat due to this scenario.
Now, they are left with no option but to wait for some time for the US real estate market to settle down. Due to the less availability and high demand, the prices of houses have reached beyond the limit of affordability for most people in the US.
Some people express that their dream to own a home is getting under the clouds. And they say their chance to buy a home has been grabbed by people with surplus cash. Besides, people who already have a home are also finding it less difficult to snatch a home in the US housing market.
Lack of Availability of Affordable Houses
People in the US believe it is not possible for them to pay a huge amount for a house. As it would lead to bigger issues in the future. And they fear things might not get back on track if they agree to pay as high as $1 million over the list price for a home purchase.
Inventory shortage and the inability of people to afford a home is throwing them out of the market. Although people consider it is the best time to buy a home due to low-interest rates, the high home prices are repelling them from striking the deal.
Due to affordability concerns, first-time homebuyers are refraining from strike a home purchase deal. Instead, they consider waiting for some time for the US housing market to settle to make a wise decision.
