The housing market in the U.S. has settled down a bit even though the home prices have gone up in September. The U.S. home prices went up with 5.6% which is lower compared to last year’s statistics. The real estate data provided by CoreLogic said on Tuesday that September’s home prices are lower compared to August when the prices went up with 6.4 % and in July with 6.8 %.
Statistics say that the U.S. home prices have been going up by as much as 12 % per year and that happened because of the Great Recession. The wages have remained basically the same after the inflation and the lending standards have remained quite strict. All these factors make it harder for families to pay more for a house.
The statistics site CoreLogic speculates that the U.S home prices will continue to go down and the annual home price will be below 5% by the end of 2015.
This should mean that the first-time house buyers will find it easier to make a purchase, if they have the adequate income and the down payment savings. At the same time, not many young Americans are looking to buy real estate, in recent times.
In 2013 there were 38% if first-time house buyers and in 2014 it went down to 33%. The numbers were made public by the National Association of Realtors in a report released on Monday.
The recent share of house sales bought by first-timers hasn’t been this low since 1987 and ay below 40%, which was the lowest average so far.
The factors that make it harder for people to save money and buy a house include higher rents, smaller incomes and student debts. The typical first-timer who earns approximately $68,000 can purchase a home worth of $169,000.
The fact that the U.S. home prices are lower than last year does not make people want to buy a house for the first time. One of the reasons is that less people are forming a household since the 2007 recession. About a third of the American adults have roommates or they live with their family, compared to 2006 when there were 27%.