AgentMarkets & Economy

Housing recovery not so bright for entry-level buyers, says FNC

Foreclosure rates down, but bidding wars and low inventory are hurting first-time home buyers
  • San Francisco home prices were 73.3 percent higher in March this year compared to January 2012.
  • Miami home prices were 60.1 percent higher since 2012.
  • Chicago and New York City both lag behind the national home price recovery rate.
  • The increased home prices are raising the value of starter homes.

While homeowners across the country continue to increase their property values and build equity in the years following the housing market crash, lack of supply and subsequent bidding wars are both heavily impacting the entry-level market, according to FNC's report on housing market trends. Price recovery since 2012 has been apparent in markets like San Francisco, where home prices were 73.3 percent higher in March this year compared to January 2012. In Miami, prices were 60.1 percent higher. Los Angeles was just shy of 50 percent price recovery in the last four plus years. Chicago, on the other hand, fell below the national average of 29.3 percent with 18.6 percent recovery. New York City only grew 12.3 percent, proving the Big Apple is more dynamic than pricey Manhattan and parts of Brooklyn. FNC says first-time buyers are going to struggle the most in areas with high job growth and housing recovery, like the West Coast. But in the Midwest, where recovery is mediocre...