First time homebuyers are lowest in history.

[Essexfenwick]

I think much of it is affordability. People refinanced at like 3% and don't want to sell. People text me and email me all the time wanting to buy my house or want to know if I know any house they can buy. They are either looking to flip or rent.

If you have a mortgage at 3%, where are you going to get similar or better for same money? Inflation is working everywhere.

The interest rate slows (shrinks) the money supply and curbs inflation. Interest rate is most direct way the Fed Reserve Bank can hit inflation. The Fed Funds rate is what the Fed Reserve Bank charges federally insured institutions on a daily basis. The Fed Reserve Bank borrows money from lenders some days and lends to lenders some days. The Fed Funds rate shrinks the money supply with higher inflation which lowers inflation.

2005-2008 rates were as high as today and prices were not much lower than today
In some places they were higher than they are now. Prices were much much higher in relation to income 20 years ago and there was no complaining like today. Young people are splurging on things that would have been considered highly luxurious back then. They pick other things above owning a home.

 

[Lil Rhody]

And who are the sellers of these properties? The parents and grandparents of the kids who are complaining about affordability.

According to the NAR, the average age of the first-time home buyer is 40 years old now. It's not kids that are complaining, It's the entire borrower pool.

 

[KHS445]

According to the NAR, the average age of the first-time home buyer is 40 years old now. It's not kids that are complaining, It's the entire borrower pool.

At my age, 40-year-olds are the kids.

 

[Zoe]

At my age, 40-year-olds are the kids.

The older I get, everybody looks young.

 

[Zoe]

According to the NAR, the average age of the first-time home buyer is 40 years old now. It's not kids that are complaining, It's the entire borrower pool.

From an appraisal standpoint, it makes a difference because 1st time homebuyers are dropping.

It also makes a difference to others in lending world. There are many foreign investors these days that pay cash to flip or rent.

 

[Zoe]

1st time homebuyers can get a benefit sometimes.

 

[JTip]

FTHB, especially younger buyers, expect a new/like new home with all the fancy amenities, big garage and short commute to work and then complain when it's wayyyyyy out of their $20/hour entry level income.

I just appraised a couple of sub 100k homes, excellent for FTHB, but lacks the integrated smart home system, new high end appliances and perfect neighborhood prerequisites they expect. Like new, central air, multiple baths, and move in ready are the MINIMUM standards these days apparently.

 

[chad hampton]

I don’t blame them. You have to be crazy to buy a house at these prices.

 

[Surf Cat]

Wage stagnation...... you know, what appraisers are facing. These kids are graduating college and there's no work in their chosen field. Or, the field is just not paying what it used to. Thus, they're working jobs a high schooler would. College loan debt, high rent, and high inflation.....so.... they're pissed off and say eff it.... slap the credit card down and go on vacation and buy the stuff they want because.... they are going to get theirs.

For the broad 18–24 college-age group, living at home is higher now than in the 1980s. Plus..... the disdain for our government is evident.