NAHB report says home buying is getting tougher
NAHB Housing Trends Report paints a portrait of affordability problems.
In the latest Housing Trends Report from the National Association of Home Builders, there is a stark contrast regarding prospective home buyers in the fourth quarter of 2018 compared to the buyers in the fourth quarter of 2017.
The report portrays a declining housing market caused by affordability issues, including rising home prices, higher mortgage rates, and lack of available homes.
According to the report, derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult, 13% of respondents the fourth quarter of 2018 were planning to buy a home within the next 12 months compared to 24% in the fourth quarter of 2017.
About 53% most prospective buyers have never owned a home before, down from 60% a year ago.
In regard to expectations, just 19% of buyers in the fourth quarter expect their house search to get easier in the months ahead. This compares to 27% in the fourth quarter 2017.
Additionally, 72% or respondents said the search will get harder or stay about the same, up from 65% a year earlier.
About 27% of buyers reported seeing more homes for sales for the fourth quarter compared to the prior three-month period, down from 34% last year. Rather, a majority of 64% said they are seeing either fewer or the same number of homes for sales. This is up from 58% in the prior year.
The full Housing Trends Report can be read here.
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