First Time Buyer Challenges for the Coming Year | Take Me Home | Bend | The Source Weekly - Bend, Oregon
The Source Weekly’s reporting is made possible by the power of your support. Be a part of it!
Pin It

First Time Buyer Challenges for the Coming Year 

According to a recent report from the National Association of Realtors, first-time buyers comprised 32 percent of the nationwide home sales in 2016. Low inventory, rising home prices, rising rent costs, and rising mortgage rates are the biggest challenges facing first-time homebuyers.

The report states that 2016 housing inventory declined by 11 percent compared to 2015 levels. About 25 percent of the homes for sale in 2016 were in the starter range, defined as the lower third of the market. According to an analysis of the numbers by Trulia, this is 12 percent less than it was in 2015.

Rising prices and mortgage rates are not helping the situation for first time buyers. Mortgage rates have climbed from an average of 3.4 percent for a 30-year fixed loan in September to 4.2 percent in December 2016.

First-time buyers depend heavily on financing and affordability. Higher interest rates and higher home prices, combined with stagnant wages, are not helping the situation. While mortgage rates are higher, they are still at historical lows.

What is happening nationally is also very true of our local market in terms of rising prices, low inventory, rising rent costs and mortgage rates. These factors coupled with low wage growth, are increasing the challenges faced by first-time buyers, many of whom are rushing to buy before rates and prices increase further.


158 SE Heyburn St., Bend, OR 97702

2 beds, 1 bath, 738 square feet, .13 acre lot

Built in 1945


Listed by Duke Warner Realty


21195 Ritz Pl., Bend, OR 97702

4 beds, 2.5 baths, 2,560 square feet, .13 acre lot

Built in 2006


Listed by Bend Premier Real Estate LLC


19333 Moon Mountain Ct., Bend, OR 97702

3 beds, 3.5 baths, 3,093 square feet, .53 acre lot

Built in 2000


Listed by Berkshire Hathaway Home Service

Pin It


Subscribe to this thread:

Add a comment

Readers also liked…

  • Pricing Your Home to Sell

    Pricing Your Home to Sell

    How to get it right in a challenging market
    • Jun 8, 2022
Today | Mon | Tue | Wed | Thu | Fri | Sat
Auditions: I Love You, You're Perfect, Now Change

Auditions: I Love You, You're Perfect, Now Change - Cascade Theatrical Theatre

Sun., June 26, 6-9 p.m. and Mon., June 27, 6-9 p.m.
Submitting an event is free and easy.

Newsletter Signup

Get Central Oregon daily news
directly in your inbox

Get Social

Latest in Take Me Home

Want to advertise with us?

For info on print and digital advertising, >> Click Here

© 2022 LAY IT OUT INC | 704 NW GEORGIA AVE, BEND, OREGON 97703  |   Privacy Policy

Website powered by Foundation