May 5, 201701:28 PMBlog
Housing market getting especially discouraging for first time buyers
“Frustrating” is how brokers are summarizing the mood of buyers, brokers – and industry professionals – during the current housing market frenzy.
New statistics from Northwest Multiple Listing Service show declines in inventory and sales, while prices continue their upward trajectory, but those numbers only tell part of the story.
“The real estate market is going absolutely gangbusters,” remarked OB Jacobi, president of Windermere Real Estate. “The remarkably low number of homes for sale can be blamed for the drop in sales,” he emphasized, adding, “The uptick in interest rates at the end of last year has clearly done nothing to slow things down.”
As a result, it’s a particularly discouraging market for those looking to purchase their first home.
“Entry level homes are getting harder to find, making life difficult and very competitive for first-time home buyers,” reported Dick Beeson, principal managing broker at RE/MAX Professionals in Gig Harbor. Commenting on the plunging supply during the past few years, he said, “No wonder brokers are getting calls from selling brokers an hour after the property is entered in the Northwest MLS system asking, ‘any offers yet?’”
Beeson hopes programs that encourage entry-level priced development will emerge to ease the situation and help accommodate demand “as more millennials come out of the basements of their parents’ homes.”
More entrepreneurship and creative ideas on architecture and lifestyle living at affordable prices are needed, he stressed, while conceding, “The end game for the rest of 2017 is clear: more scarcity, more angst by buyers, more reluctance to sell among sellers because they can’t find their next home.”