![]() Minority would-be homeowners are feeling increasingly priced out of the market, holding off on purchasing a home until the numbers look better, says a new report issued by the National Association of Realtors. Prospective home buyers in three minority categories - Asian, Black, and Hispanic - all say they are waiting for prices to drop before entering the market. An equally large number are waiting for historically high mortgage rates to decline. A third smaller category, notes the 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report, indicated that there were not enough homes available within their budgets. “Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage rates,” remarks Jessica Lautz, chief economist and research vice president with the NAR. In a statement, Lautz added: “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.” The report additionally notes that saving for a competitive home down payment has also emerged as a primary obstacle to buying a home, with many indicating that they are already burdened with credit card debt, student loans, and high rents. At the same time, realtors interviewed for the report indicated that less than a quarter of would-be homeowners have applied for down payment assistance programs. Noted Lautz: “Down payment assistance programs often fly under the radar for potential home buyers.” Some 31% of Hispanic respondents, 30% of Black respondents, and 32% of Asian respondents said they were not aware of such programs. Pointing to Veterans Administration, Federal Housing Administration, and U.S. Department of Agriculture loans, Lautz added that realtors may increasingly find themselves tasked with educating potential buyers about the benefits of such programs. “Doing so, will bring in more first-time buyers and narrow the homeownership gap,” continued Lautz. By Garry Boulard
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