By John Salustri | Glob St.
We’ve heard for years now, it seems, of the plight of first-time homebuyers turned away from the dream of a first home due to the post-recessionary escalation of prices. That’s likely to change, says Marcus & Millichap in its newly released Research Brief on the housing sector.
The focus of many homebuilders is shifting away from what has been their prime product—upscale homes—to smaller houses geared to that until-now overlooked segment. “New-home builders focused on larger, luxury homes since the recession as buyers of these homes faced fewer credit restraints and remained active in the market while first-time homebuyer activity weakened,” the Brief explains. “As a result, a shortage of smaller, entry-level homes typically targeted by first-time homebuyers weighed on the market. Builder sentiment, however, has begun to shift as they seek to capitalize on rising demand for single-family housing.”
