1. Not enough to go around.
This is a build up of multiple things. Firstly there has been a decline in construction workers which in turn has led to high-priced construction. The other aspect is that the so called 'Baby boomers' have not sold their properties at the rate of previous generations. When they do they are looking to downsize.
2. Lack of affordability.
Construction has been slow and there has been a constant cry out to ramp up building new homes. New homes are great but there hasn't been the push for more affordable housing which is a big issue for first time buyers.
In 2019 there were roughly 585 000 new homes built and 56% of them were $300,000 or above. That is a big issue for people trying to get on the property ladder.
3. Financing.
Saving the dreaded 20% down payment while still paying your housing is one of the biggest hurdles that buyers have faced. There has been some improvements in this area however with various alternatives. There are different down payment assistant programs, FHA loan options and other conventional loans with as little as 5% down payment.
Expect to pay PMI (Private Mortgage insurance) if you put down less than 20% however.
4. Searching.
The most successful home hunters are very efficient in their searching process.
HomeTraq provides a superior home-search process while also allowing you the freedom of a no-commitment relationship an realtor.
Create FREE Search Account with HomeTraq >>
Happy house hunting!