Luxe Austin Homes - first-time homebuyers

"Gen Z's regret grows over generational housing divide"

Austin Business Journal writes, "High home prices and elevated interest rates have members of Generation Z worried about missing out on the dream of homeownership — or deeply regretting having taken the plunge.

According to the BMO Real Financial Progress Index, 54% of American renters envy people their age and younger who have purchased a home. It's a dynamic that's even stronger among Gen Zers, with 63% of those respondents saying they are envious of homeowners. The Gen Z share is second only to that of millennials, who are most likely to be envious, at 67%.

"The data show that owning a home remains a key component of the American dream, but with some obstacles still facing first-time homebuyers, younger generations worry they missed their…

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"Share of first-time homebuyers hits record low as affordability challenges persist"

Austin Business Journal shares, "First-time buyers hit a record low share of the homebuying market last year, another sign that affordability continues to make homeownership out of reach for many.

Only 24% of homebuyers surveyed by the National Association of Realtors said they were purchasing a home for the first time — a substantial drop from the 32% who said the same the year prior. Meanwhile, baby boomers were the largest cohort of homebuyers last year, making up 42% of all homebuyers.

The survey took place in July and included buyers who purchased a primary residence between July 2023 and June 2024. Results were released earlier this week.

Rising home prices, high mortgage rates, limited supply and competition with all-cash buyers…

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"Elevated prices, interest rates will continue to curb housing affordability in 2025"

Austin Business Journal reports, "Homebuyers and sellers in the Austin metro likely will see little change in prices and inventory in 2025.

That's because median sales prices are likely to hover around the $450,000 mark reported in December 2024, and interest rates are expected to stay high, according to Clare Knapp, housing economist for the Austin Board of Realtors and Unlock MLS. It's a combination that's considered unaffordable for many first-time homebuyers, which means the onus is on homebuilders to build more homes with lower price tags to help move the needle on affordability in the metro.

A first-time homebuyer can typically afford to pay three times their income for a home, putting many in the market for a home in the $300,000 to $400,000…

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"First-time homebuyers flock to Williamson County"

In October, the most recent data available, the median sales price of a home in Williamson County clocked in at $420,000 compared to $510,000 in Travis County and $565,000 in the city of Austin, according to the Austin Board of Realtors’ and Unlock MLS’ latest market data.

While the more affordable inventory in Williamson County is attractive to first-time homebuyers, the job market fueled by employers such as Apple and Samsung is also a major driver of demand in the region.

Kent Redding, ABOR's 2024 president, said buyers are comparing the average sales price of a home in Austin to other areas of the metro and deciding they simply can’t afford a house in Austin — especially at a time when mortgage rates are elevated.

The average 30-year…

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"Building Boom Forecast for 2025: Number of Affordable New Homes Set To Soar, but Expect Them To Be Smaller"

Realtor.com writes, "Builders are working to fix America’s critical housing shortage—and while the number of new homes is expected to top 1.1 million in 2025, expect them to be built slightly smaller.

But, homebuyers can expect them to be more affordable, too, according to the Realtor.com® 2025 Housing Forecast. This is especially good news for first-time homebuyers, who might find new homes easier to access in areas that are growing.

New construction will help ease the housing shortage

In 2025, new-home sales and single-family housing starts are expected to improve compared with other types of homes. Builders plan to construct about 1.1 million homes, which is a 13.8% increase from 2024.

Builders are working to make homes more affordable,…

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"There Are Now 30 Renters for Every Home for Sale in the U.S."

Realtor.com reports, "the number of homes for sale for each renter household in the U.S. remains near record lows, highlighting the supply crunch that first-time buyers face in the current housing market.

Currently, there are about 30 renter households for each available home for sale, up from less than 10 in 2006, according to Freddie Mac’s latest market outlook report.

The supply shortage dates back to the Great Recession, which dealt a major blow to new home construction. Since then, construction has slowly increased, but failed to keep pace with demand, resulting in a shortage of at least 1.5 million homes.

“Therefore, not only do people seeking to buy their first home have to navigate an expensive market, but they also have to compete…

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"Despite Inventory Rise, Home Buyers Remain Cautious"

Realtor Magazine writes, "Home buyers may finally be finding more inventory options this fall, but they’re still being cautious about entering the real estate market, the National Association of REALTORS® reported Wednesday.

“Home sales have been essentially stuck at around a 4-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” says NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”

Total existing-home sales—which reflects completed…

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"How buyers have (and haven’t) changed in recent years"

RealEstateNews.com writes, "Zillow’s latest trends report finds that, despite turbulence in the market, consumer traits and preferences are fairly stable — with some key exceptions.

Key points:

• The 2024 Consumer Housing Trends Report reveals that buyer demographics have remained fairly consistent overall, but the share of first-time buyers has declined.
• Buyers are continuing to fork out a higher percentage of the sale price for their down payment, but many are able to secure lower-than-average mortgage rates.
• Staying within their budget and finding a home with air conditioning and the right number of bedrooms are top priorities.

The real estate market has experienced its share of ups and downs over the past few years, but when it…

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"Housing Market Predictions: What Homebuyers Should Know"

Business Insider writes, "After watching mortgage rates hit two-decade highs and inventory plummet last year, many hopeful homebuyers are eager to get off the sidelines and into a home.

Fortunately, housing market conditions have been getting slightly better, and they should ease somewhat throughout the rest of 2024 and beyond now that the Federal Reserve has started cutting rates. If you're planning to buy a house this year, here's what you need to know about housing market predictions in 2024, and how you can prepare.

Overview of the housing market

The average home value in the U.S. is $361,282, according to Zillow — up 2.9% year over year. Last month, average 30-year mortgage rates fell to 6.05%, down 40 basis points from the month before.…

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"Is it a buyer's or seller's market? Neither — but it's moving toward buyers finally"

Austin Business Journal shares, "The Austin-area housing market has reached a stalemate between buyers and sellers — and that's allowing much-needed inventory to catch up and prices to hold steady.

A few years ago it was common for some parts of Central Texas to have a week or two of housing stock. Home inventory in May was clocked at 4.9 months — 1.5 months more than a year ago. It's a level of inventory that hasn’t been seen in 13 years, according to the Unlock MLS report on the Austin Board of Realtors website. Housing experts often say six months of inventory is representative of a healthy market.

“The good news is that we are moving toward a more sustainable level of inventory, which will provide price stability for sellers and more choices for…

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