March/April 2017 Market Pulse

A glimpse at the current state of the housing market.

March 15, 2017

Price Increases Are Challenging Buyers

As home prices and interest rates rise, more buyers, especially first-time purchasers, are under pressure. Home prices rose sharply in the last quarter of 2016, fueled by low inventories in many parts of the country, particularly in the entry-level home price range. Federal policies that restrict access to credit, including suspension of a planned reduction in FHA mortgage insurance premiums and high guarantee fees by Fannie Mae and Freddie Mac, will add to affordability woes.

 

 

 

More Renters Change Their Status

The share of former renters who have taken the plunge into homeownership has slowly but steadily increased over the last two years. The ex-renters include first-time buyers and so-called boomerang buyers who have reentered the market. Rising rents have contributed to the increasing interest in home buying.

 

Source: NAR Research

 

Lawrence Yun
Chief Economist and Senior Vice President of Research at the National Association of REALTORS®

Lawrence Yun is chief economist and senior vice president of Research at the  National Association of REALTORS®. He directs research activity for the association and regularly provides commentary on real estate market trends for its 1.1 million REALTOR® members. Dr. Yun creates NAR's forecasts and participates in many economic forecasting panels, including Blue Chip and the Harvard University Industrial Economist Council. He appears regularly on financial news outlets and is a frequent speaker at real estate conferences throughout the United States. USA Today recently listed him among the top 10 economic forecasters in the country.