Door Closing on First Time Home Buyers

 Prashant Gopal & John Gittelsohn are probably the two best media writers on real estate in the USA and I recommend their article in Bloomberg News yesterday
Americans Shut Out of Home Market Threaten Recovery
The major issues country-wide seem to be:

• We have the lowest market share (26% in January) for first time home buyers since the National Association of Realtors started measuring this in 2008
• Home prices have been rising much faster than incomes, which for the majority of people have risen little in the last 15 years when adjusted for inflation. This is unsustainable.
• Americans under 40 have recovered only a third of the wealth lost after the recession of 2007 (while older Americans have recovered back to pre-2007 levels)
• FHA loan purchases have declined 38% since their peak in 2010, and are likely to fall further in 2014 due to the reduced FHA loan limits
• More than 40% of lenders in 2013 had FICO scores over 760. In 2001 the percentage was about 25%.
• Applications for mortgages to buy homes are at their lowest level since 1995
• The home ownership rate for people under 40 fell to 42.2% in 2013, the lowest in 19 years

Above from the Cromford Report

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