"We’re actually forecasting that home prices will continue to grow based on the lack of inventory and demand for home ownership," Jessica Lautz, NAR deputy chief economist and vice president of research, told The Epoch Times.See apparently conflicting 'sales down, inventory up', for May, below.
A $400,000 price tag translates to a $40,000 down payment—with the usual requirement of 10 percent of the home cost. "That’s a lot of money for first-time homebuyers, which means sometimes they may have to borrow from parents or friends to make it happen," Ms. Lautz said.
NAR reported that May’s existing home sales dropped 2.8 percent from one year ago while inventory of unsold existing homes grew 6.7 percent from the previous month.
First-time homebuyers are waiting longer to purchase homes. Last year the median age for these buyers was 35. Some of them are still waiting for either prices or mortgage rates to fall, but Ms. Lautz believes rates may stay between 6—7 percent through the end of the year.