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A new report by Nerdwallet has found that during the third quarter the property prices dropped 1% and inventory rose 31% on average across the country showing some ray of light for first-time homebuyers.
In its quarterly report the company said that in spite of the prices being 5.5 times above first-time homebuyer’s (FTHB) income, the small 1% drop in existing home list prices shows the price growth had slowed down.
Beyond the 50 metro areas examined by Nerdwallet, only six had homes listed at less than four times FTHB income.
They noted that in the last quarter the number of homes listed for sale grew 31%, but it was still down 23% compared to 2020.
NerdWallet data analyst Elizabeth Renter said that the pandemic had affected people disproportionately, which is the reason why many first-time buyers who had not lost their jobs were able to save money during the pandemic, resulting in rising in the personal savings, and people were able to brave this market and purchase.
She suggested that many sellers had waited to put their properties up for sale until the third quarter which resulted in the 31% increase in inventory.
The Fintech company report also analyzed affordability in the 50 biggest metros in the USA. Showing that Pittsburgh, Cincinnati, and Milwaukee were the most affordable areas.
Whereas Austin, Las Vegas, and Tampa experienced price increases.
Renter stresses the importance of consulting local mortgage professionals before choosing a location because they would help first-time homebuyers with affordable homes in desirable neighborhoods.
She said the pandemic is not affecting the market too much unless this variant is very stronger and dangerous.
Reference Source: MPA
