The Impact of Rising Home Prices on First-Time Buyers

1 min read
Source: WOLF STREET
TL;DR Summary

Sales of previously owned homes in the US fell by 2.2% in July from June, reaching the lowest level since January, as demand vanished and supply increased. The median price dropped, days on the market increased, and supply rose to match the highs in 2022, reaching the highest level since June 2020. Homeowners with low mortgage rates are not buying new homes or putting their current homes on the market, causing a 20% shrinkage in the housing market. Cash buyers and investors also pulled back, and mortgage applications plunged, indicating a further decline in sales for August.

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