Low listing inventory and high demand has created a lean market for home buyers across the nation. On top of the increase in median listing price, first-time homebuyers face the added challenge of rising material costs for new construction homes. The month of April marks the anniversary of the 1968 Fair Housing Act — making April a time to remember America’s history of financial discrimination and a time to support a future of equal opportunity in the housing market.
Celebrate the Anniversary of the 1968 Fair Housing Act in April
- On April 11, 1968, President Lyndon Johnson signed the Fair Housing Act, making the month of April a celebration of fair housing.
- America has a history of racial discrimination in the housing market, known as redlining and blockbusting.
- Redlining is the discriminatory practice of denying financial services to residents based on their race, religion, national origin, sex, handicap, or family status.
- Blockbusting occurs when a real estate broker manipulates the home buying/selling process in a discriminatory way, like convincing a homeowner to sell their home for a lower price based on the assumption that the neighborhood’s socio-economic makeup is about to change and that property values will soon decrease.
- Today, real estate agents are in a unique position to provide continued support for equal housing opportunities for everyone by educating themselves on the past, present, and future of fair housing.
Springtime Inventory Is Half that of Last Year’s
- This spring, buyers have 52% fewer homes to choose from compared to last spring.
- Low inventory and high demand has caused record-breaking home prices across the country.
- March’s national median list price showed a 15.6% increase since last spring — putting it at an all-time high.
- Homes will likely continue to sell quickly in the coming weeks, but increased interest rates could stunt the growth of listing prices.
2021 Shows a Surge of First-time Homebuyers in the New Construction Market
- In 2021, first-time home buyers account for 43% of the new construction market — in 2018 that number was 32%
- Not only have the home prices gone up but the material to build those homes has increased, making the new construction market for first time home buyers even more challenging when they represent such a large portion of that market.
- Increased listing prices coupled with an increase in material costs pose a challenge for the new construction market, especially for first-time homebuyers who represent a large portion of that market.
- Lumber prices have increased by more than 180%, causing the average home price to increase by $24,000.
- Policymakers must address rising material costs if homeownership is to become accessible to everyone.
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