Home sales are outpacing last year’s sales, but tight inventories and mortgage underwriting continue to weigh on the market. First-time buyers are slowly emerging but make up just 30 percent of buyers, down from historical norms of around 40 percent.
Ups and Downs of Home Prices and Income
Equilibrium between home prices and household income helps keep the housing market stable, although the two rarely line up. Since early 2014, the gap has been widening but at a more modest pace than in previous years as home price gains have slowed.