Buyers Can Afford Fewer Homes Today Than One Year Ago

Last month, the national average for first-time homebuyers' monthly housing costs rose 9 percent, or $136 year-over-year to $1,641. The Bay Area (San Francisco and San Jose), Seattle, and Las Vegas had greater YOY increases.

The Bay Area had the most growth YOY for entry-level monthly housing costs at 14 percent, or $584 to $4,673. Seattle was close behind at 13 percent, or $314 more per month. According to John Burns Real Estate Consulting's (JBREC) data and analysis, both the Bay Area and Seattle's buyers are considered "overly exuberant." Further, JBREC concludes that buyers are able to afford fewer homes today than last year, and will have to make tradeoffs on home and lot size, location, age of home; builders may too have to make similar concessions.

One of our first-time home buyer team members just lost out on a home purchase, as only the top 5 bids (out of 20!) were given the opportunity to increase their offer! Homeownership costs continue to grow faster than incomes, making homeownership more difficult. As a result, buyers, especially first-timers, are forced to make compromises when purchasing a home.

Read more