HomeFinance NewsMortgagesSoaring Home Prices Hurt First-Time Buyers: Is the American Dream Dead?

Soaring Home Prices Hurt First-Time Buyers: Is the American Dream Dead?


Existing home sales rose 3% to start the year, but higher mortgage rates are already hurting


In January, sales of used homes increased despite a slight annual decline.

This rise was likely driven by lower mortgage rates during November and December.

However, inventory levels remain low, creating a competitive market that has led to higher prices.

The median cost of a used home reached an all-time high for January, at $379,100.

Higher mortgage rates are now affecting the market again, with signed contracts decreasing from last year.

Despite the challenges for first-time buyers finding affordable homes, multiple offers and cash deals are still common, reflecting the strong demand.

  • Overall sentiment: positive
  • Positive

    “Sales of previously owned homes rose in January, boosted by lower mortgage interest rates of November and December.”

    “Sales of previously owned homes rose 3.1% in January to 4 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors.”

    “Inventory of homes for sale in January increased to 1.01 million units, up 3.1% from January 2023, but still at a low three-month supply.”

    “All four U.S. regions saw price increases, and 16% of homes were sold above list price.”

    “The 32% all-cash share was up from 29% in both December and in January 2023.”

    “A separate report from Redfin showed new listings rose 10% year over year during the four weeks ended Feb. 18, the biggest increase in two months.”


    “Sales were down 1.7% year over year.”

    “First-time buyers made up just 28% of sales.”

    “While lower mortgage rates helped boost January sales, today’s higher rates are already once again weighing on the market.”

    “Signed contracts, however, were down 7% from a year ago”

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