Affordability Issues are between most people who want to buy a home! Greg McBride says their research is showing these people say it's just not affordable! "The inability to save for a down payment and closing costs is very definitely an obstacle. It's a bi-product of household budgets being absolutely shredded by the inflation we have been seeing for the past couple of years." He says economists are predicting changes that will help them save more money and pay down more debt. "More likely we will see prices level out. Some of those affordability obstacles that we're seeing now may not be a daunting in a year or two."
Are First-Time Home Buyers Being Squeezed Out?!?
McBride says their recent research is showing they feel they lack the income, savings for the down payment, and a good enough credit rating to buy these expensive houses. "A higher home price means you have to borrow more, you need to save more for the down payment, and you need to have a higher income and credit rating to get approved for that higher loan amount!"
He adds that inflation has shredded their household budget and killed their ability to save like they have been. McBride feels home prices will lower, and inflation should cool so they could be buying in a year or two.
He says some are planning to move out of state, buy a fixer-upper or even bring in a roommate.
photo:Getty
3 out of 4 home shoppers can't afford to buy a house. Photo: Getty Images