January 29, 2023

La Ronge Northerner

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Older, white, and other wealthy homebuyers are being pushed out of the market

Older, white, and other wealthy homebuyers are being pushed out of the market

Black and Asia/Pacific Island buyers together accounted for just 5 percent of total home sales, as their market shares dwindled in the survey year compared to the previous year. Hispanic and Hispanic buyers accounted for 8 percent during that time, according to a survey of 4,900 recent primary home buyers nationwide.

The shift comes as a historic shortage of available homes has contributed to soaring home prices, leading to bidding wars, driving up prices even more. Run for two years refrigerated As mortgage rates began to climb, climbing above 7 percent by October, Doubles in nine months. For many first-time buyers, rising interest rates dealt a fatal blow, closing the door on ownership for the foreseeable future, as home sales kiosk amid high prices.

“It’s amazing what someone can lose when it comes to housing wealth,” said Jessica Lutz, vice president of demographics and behavioral insights at the National Association of Realtors, adding that the typical homeowner has earned about $210,000 in stock over the past. decade.

About 27 percent of repeat buyers paid all cash for their home during the survey period, up from 17 percent the previous year. By contrast, only 3 percent of first-time buyers paid cash during the survey year.

Besides, whatever savings first-time buyers brought to the table for a down payment and closing costs were dwarfed by the rapid rise in home values, which jumped in double-digit increases for two years. Unlike frequent homebuyers, many first-time buyers have spent the past two years at the mercy of a ruthless rental market, where rents have jumped nearly 18 percent over the course of 2021, according to the List of apartmentswhich reduces their ability to save.

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Older buyers now dominate the housing market. People aged 55 to 74 made up 42 percent of home buyers, while the share of people aged 25 to 34 made up just 14 percent of buyers during the survey year, a 10 percent drop from the same period. timeline. a year ago. The rising age of first-time buyers ends decades of stability as they averaged around 30 to 32, according to the survey.