Thursday, July 7, 2022
  • Login
CEO North America
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • CEO Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
CEO North America
No Result
View All Result

First-time buyers, inventory expected to rebound in 2024

in Industry
First-time buyers, inventory expected to rebound in 2024
Share on FacebookShare on Twitter
  • Panel expects a two-year climb back to pre-pandemic for-sale inventory levels
  • Share of first-time buyers is forecast to stay below 2019 levels until 2024
  • Home price appreciation should outstrip all inflation measures this year except that of energy

The housing market is expected to return to pre-pandemic, 2019 norms — at least in terms of inventory and the share of purchases made by first-time home buyers — by 2024 according to a panel of housing market experts polled in the latest Zillow® Home Price Expectations Survey.

The dwindling supply of homes for sale has been a key driver of the recent explosion in U.S. home values, which have risen 32% in the past two years. Total inventory has fallen from a monthly average of 1.6 million units in 2018 and 2019 to just over 1 million in 2021, and monthly figures in 2022 are lower still.

Inventory should return to a monthly average of 1.5 million units or higher in 2024, according to the largest group (38%) of respondents to Zillow’s survey. But many are more optimistic — the second-largest group (36%) believes supply will bounce back to pre-pandemic levels in 2023, while 2025 earned the third-highest share of votes with 12%.

“Inventory and mortgage rates will determine how far and how fast home prices will rise this year and beyond,” said Zillow senior economist Jeff Tucker. “We are seeing new listings returning to the market, slowly, as we enter the hottest selling season of the year, but this supply deficit is going to take a long time to fill.”

Return of the first-time home buyer

The pandemic ushered in record-breaking price growth alongside rent hikes that made saving for down payments even more difficult. As a result, the share of first-time home buyers dropped from 45% in 2019 to 37% in 2021, according to a Zillow survey of recent buyers.

First-time buyers should regain their pre-pandemic share of the market in a couple of years, according to the majority of experts polled, with 26% pointing to 2024, and 25% liking 2025. Eighteen percent of the experts polled did not believe the share of first-time buyers will rise above 45% until after 2030, despite millennials — the largest U.S. generation ever — aging well into their prime home-buying years before that time.

Inflation considerations

Inflation has already begun eroding the bottom lines of American households, with the Bureau of Labor Statistics noting rising costs for energy, housing and food as prime factors driving it to a four-decade high.

Of the six categories considered, survey participants expect energy prices to increase the most over the course of 2022, followed by house prices, residential rents and food costs. Employee wages and stock prices were ranked fifth and sixth, respectively, rounding out the list.

Price growth projections

Pulsenomics founder Terry Loebs said the panel’s average projections for home price growth in 2022 have been revised upward, from 6.6% three months ago to 9% in this survey.

“Against the backdrop of tightening Fed policy and increasing mortgage rates, this more bullish outlook for home values suggests that home inventory shortages will remain the dominant price driver this year,” Loebs said. “If price increases this year for homes, rents, energy, and food each exceed wage growth – as the panel expects – home affordability challenges will intensify further, especially for low- and moderate-income renters.”

Zillow economists forecast a 16.3% rise in typical home values from February through December.

(Courtesy Zillow)

Tags: home inventoryhome prices

Related Posts

Will rising rents push up future inflation?
Industry

Will Rising Rents Push Up Future Inflation?

Steel imports down 23% in february vs. January
Industry

Steel Imports Down 23% In February vs. January

New boston fed paper: high inflation turns heads and can tilt expectations
Industry

New Boston Fed Paper: High Inflation Turns Heads and Can Tilt Expectations

Energy fact sheet: why does russian oil and gas matter?
Industry

Energy Fact Sheet: Why Does Russian Oil and Gas Matter?

Api: lapse in 5-year leasing program puts 14,000 louisiana jobs, american energy security at risk
Industry

API: Lapse in 5-Year Leasing Program Puts 14,000 Louisiana Jobs, American Energy Security at Risk

Conference board: us consumer confidence up slightly
Industry

Conference Board: US Consumer Confidence Up Slightly

Retail apocalypse: four ways physical stores can survive
Industry

Retail Apocalypse: Four Ways Physical Stores Can Survive

How soaring shipping costs raise prices around the world
Industry

How Soaring Shipping Costs Raise Prices Around the World

Special purpose entities shed light on the drivers of foreign direct investment
Industry

Special Purpose Entities Shed Light on the Drivers of Foreign Direct Investment

Richmond fed: the impact of relative price changes on recent inflation
Industry

Richmond Fed: The Impact of Relative Price Changes on Recent Inflation

No Result
View All Result

Recent Posts

  • Jobless Claims Rose Slightly Last Week, Layoffs Hit 16-Month High
  • U.K. Prime Minister Boris Johnson Resigns
  • Passive ETFs Are Surprisingly Active
  • Amazon Secures Stake in Grubhub, Gets into Food Delivery
  • Job Openings Fell in May as Demand for Workers Remains Strong

Recent Comments

    Archives

    Categories

    • Art & Culture
    • Business
    • CEO Interviews
    • CEO Life
    • Editor´s Choice
    • Entrepreneur
    • Environment
    • Food
    • Health
    • Highlights
    • Industry
    • Innovation
    • Issues
    • Management & Leadership
    • Multimedia
    • News
    • Opinion
    • PrimeZone
    • Printed Version
    • Travel
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    CEO Latin America | ES

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

    Editorials – george.hatfield@ceo-na.com
    Advertising – media@ceo-na.com

     

    AUSTIN

    600, Congress Avenue 14th Floor
    Austin, TX.
    78701
    USA
    +1 512 649 0340

    NEW YORK

    387 Park Ave South,
    New York, NY.
    10016
    USA
    +1 212 796 64 15

    CEO North America © 2022 - Sitemap

    No Result
    View All Result
    • Home
    • Business
      • Entrepreneur
      • Industry
      • Innovation
      • Management & Leadership
    • CEO Interviews
    • CEO Life
      • Art & Culture
      • Food
      • Health
      • Travel
      • Environment
    • Opinion
    • News
    • Multimedia

    © 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?