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You are here: Home / Real Estate / Low Inventory, Higher Rates Face Buyers in 2017

Low Inventory, Higher Rates Face Buyers in 2017

January 9, 2017 By Geoffrey Disch Leave a Comment

A continuing low inventory of existing homes – both nationwide and particularly in the Bay Area – combined with rising mortgage rates, will have an adverse affect on first-time and millennial buyers.

As more than 95 percent of first-time homebuyers must finance their new home, rising interest rates in combination with other financial challenges such as student debt may price many out of the housing market.

Realtor.com estimates that millennial buyers will be approximately 33 percent although that rate will be considerably higher in Midwestern markets where demand remains strong and home prices much more affordable.

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Filed Under: Real Estate Tagged With: 2017 housing market

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