The scarcity in housing inventory is taking its toll on first time home buyers and causing prices to spike in many areas of the country, according to a new report issued by the National Association of Realtors. “Low inventory conditions hurt would-be-first-time home buyers the most,” said Lawrence Yun, NAR chief economist. “Their homeownership dream and the opportunity to build wealth gets delayed until more inventory choices reach the market,” he noted.
The lack of inventory, though, is benefiting sellers causing prices to rise. In fact, home sellers received a median of 99 percent of their asking price this year and typically sold their homes within three weeks, according to the NAR. With rising prices, first-time home buyers also are turning to family and friends for help in accumulating a down payment. Yet, because of the low inventory, Yun said buyers report the most difficult step in the home buying process is just finding the right home to purchase.