How did new homebuyers do it this year? Lots of money and help
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Seeking the white picket fence, Katie Stahlmann Becker and her husband, JJ, left pricey San Diego for more affordable St. Paul, Minnesota.
Why it matters: The couple, ages 34 and 37, bought their first home this year — pulling off what many considered impossible.
High housing prices and mortgage rates, plus a shortage of affordable homes, have pushed homeownership further out of reach, particularly for younger people.
- But some are getting creative, relying on family support or tempering their dream home expectations.
A California salary and a Fortune 500 job, savings and a VA-backed loan made homeownership with a 5.75% interest rate possible for Katie and JJ.
- The couple closed on a three-bedroom house in September.
What they're saying: "We knew we'd be able to buy a little house with a little yard and plan our future here in the Twin Cities," says Katie, who's originally from the metro area.
In Chicago, an inheritance allowed Scott Kupferschmidt to purchase a one-bedroom condo this spring for $271,000 in cash.
- "I was not in a position to buy," the 44-year-old therapist tells Axios.
- It would have taken at least five more years of saving without the financial boost, he says.
The big picture: The median age of first-time homebuyers is now 38, a new high in National Association of Realtors data going back to 1981.
- And the share of those buyers in the housing market has fallen to a record low of 24%, the data shows.
What we're watching: Home sales remain sluggish, but the worst of the downturn "could be over," according to Lawrence Yun, National Association of Realtors chief economist.
