First-Time Homebuyer Affordability Improves Slightly, but Challenges Persist
A lack of inventory remains one of the biggest hurdles faced by first-time buyers
Dec. 10, 2024
Rido / stock.adobe.com
First-time homebuyers are seeing the housing market improve slightly, but challenges remain.
Affordability for first-time homebuyers improved marginally in the third quarter, yet market conditions remain tough. According to financial services company NerdWallet, buying a home has become increasingly difficult with the median age of first-time buyers climbing to a record-high of 38 years old. While mortgage rates dipped from 7% in Q2 2024 to 6.5% in Q3 2024, lowering interest costs, and active listings increased by 16%, these gains were modest. Despite these improvements, housing costs and inventory levels are still far from favorable.
In the third quarter, the number of active listings rose 16% nationwide when compared with the previous quarter. Listings are up 35% when compared with the same period last year. But the supply of homes is still suffering—down 26% from the same time five years ago.Read more
