The latest edition of the National Association of Realtors Housing Opportunities and Market Experience (HOME) survey found that home-price growth and tight supply are dissuading renters from buying.
Also, the report discovered that young adults don’t understand how much down payment is needed to buy a home.
Lawrence Yun, NAR chief economist, says it’s clear the ongoing run-up in home prices and severe inventory shortages in a large portion of the country are hitting consumer psyche – especially among renters. “This summer’s historically low mortgage rates injected some additional demand into the market, but the dearth of homes for sale continues to keep a lid on sales but not prices,” he said. “Given the stiff competition and limited homes available at the lower end of the market, it’s not surprising at all that those under the age of 34 and in the West are the least confident about it being a good time to buy.”
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