In a dismal trend for first-time homebuyers, home price increases continue making it excruciatingly hard for first-time buyers to find even an entry level home, according to a recent report.
"Home prices increased 6.6% year-over-year in January, and are projected to appreciate another 4.8% from January 2018 to January 2019," according to National Mortgage News.
"'Entry-level homes have been in particularly short supply, leading to more rapid home-price growth compared with more expensive homes,' Frank Nothaft, chief economist for CoreLogic, said in a press release."
This is an ongoing trend that is forcing first-time homebuyers to choose whether or not they should put off purchasing a home until mortgage rates decrease, or, until an increased supply of homes drives the prices down.
"Homes with a purchase price less than 75% of the local area median had price growth of 9% during the year ending January 2018. Homes that sold for more than 125% of median appreciated 5.3% over the same 12-month period. Thus, first-time buyers are facing acute affordability challenges in some high-cost areas," Nothaft continued, according to NMN.
The report also revealed close to half of the largest metro areas in the U.S. are currently overvalued.
To learn more about these price increases and the conditions that are creating them, click on the image above.