Commentary

"We've been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation," said Black Knight VP of Enterprise Research Andy Walden. "Well, June marked that inflection point."

For a litany of reasons—including rising prices and inflation—most consumers surveyed believe that now is not a good time to purchase a home.

Home prices are increasing due to the mismatch between supply and demand, as inventory remains low due to the lock-in effect. The total number of homes for sale is down 19%, the biggest drop in a year and a half, and new listings are down 21%.

According to Odeta Kushi, First American's Deputy Chief Economist, there has never been an official or general agreement on what constitutes a housing recession.

“Sharply lower housing inventory in the U.S. and higher borrowing costs across the world have dented international buyers for two straight years,” said NAR Chief Economist Lawrence Yun.

Homeowners are feeling the pinch as searches for Home Equity Line of Credit (HELOC) hit their highest point in U.S. internet history

In fact, according to a LendingTree analysis of U.S. Census Bureau Characteristics of new housing data, homes have shrunk slightly since 2012, but the average price per square foot has nearly doubled.

For a clearer glimpse into what first-time homebuyers are experiencing, Poin2 analyzed the number of years it would take for the average renter to save up for the upfront costs required to buy, as well as how many years it would take to cover the full cost of the first year of homeownership in the top-100 metropolitan real estate areas.

“Buyers searching for starter homes in today’s market are on a wild goose chase because in many parts of the country, there’s no such thing as a starter home anymore,” said Redfin Senior Economist Sheharyar Bokhari.

Despite the widespread aspiration for homeownership, many Americans lack the necessary knowledge of basic concepts integral to this dream.