Mortgage rates recently slipped to a four-week low and spring brought what agents call a “Goldilocks” selling week — a stretch when listings draw more attention and some sellers re-enter the market. That uptick, however, hasn’t made it easier for people trying to buy their first home.
In Los Angeles, Realtor Paola Acuna is still marketing a three-bedroom condo after 60 days, hoping mid-April open houses will finally produce an offer. Realtor.com data show listing views running roughly 17% above normal during this seasonal window as demand that was held back by winter begins to surface.
Even so, first-time buyers are being sidelined. They now account for just 21% of home purchases, the lowest share on record. The barriers are multiple: home prices remain historically high in many metros, mortgage rates are still elevated compared with the rock-bottom levels of recent years, and competition from older, wealthier buyers is intense.
Baby Boomers, who often have considerable home equity and savings, make up about 42% of today’s buyers and can frequently outbid younger households. That dynamic helps explain why many people who have saved for years are reluctant to pull the trigger. Danielle and Gary Sabara, for example, have been building a down payment for years but worry about stretching their budget — some buyers are rushing to purchase now with the plan to refinance later if rates fall.
Realtors describe a mix of urgency and caution: buyers want to lock in a property when they find one they like, yet many are unwilling to compromise other financial priorities such as retirement contributions or childcare spending.
Homebuilders are likewise cautious. Despite summer’s traditional role as prime construction season, builder confidence is at a several-month low. Rising materials costs — in part tied to higher fuel prices — are cutting into margins and delaying new starts. With fewer new units coming online, inventory constraints are likely to persist, keeping competition and prices elevated.
Housing experts note that homeownership can be an important path to building wealth, but they also advise flexibility. For some households, buying now makes sense; for others, continuing to rent or pursuing different investments may be the wiser choice until prices, rates, or personal finances line up more favorably.
Reporter Carter Evans contributed reporting from Los Angeles.