Alexandra Lashner and her husband have been saving for a home since they got married in 2018. Their plan was to buy in the Philadelphia area this year, close to where they grew up and to their parents.
Like the rest of the country, demand for homes and prices have been through the roof in the Greater Philadelphia area. Knowing that, the couple was wary of going over budget or paying over asking price and didn’t want to waive their right to a home inspection like many buyers have in order to win homes. But after nine months, losing out on two homes and seeing their pre-approval letter expire, the couple is hitting the pause button on their search.
“It’s becoming impossible for us to buy a home where we grew up, and in the area where my parents grew up before me,” says Lashner, an account executive with Frank Advertising in New Jersey. “It’s downright exhausting and we’re burned out.”
The Lashners aren’t alone. In June, just 32% of consumers said it was a good time to buy a home — the lowest percentage in the history of Fannie Mae’s Home Purchase Sentiment Index. (That’s despite super low mortgage rates and a sense in some circles that everyone is buying right now.)
In another recent study, 33% of people who considered purchasing a home this year decided against it, according to ServiceLink, a mortgage services provider.
Of those, 31% said the reason they weren’t buying was because housing options had become too expensive. Home prices have increased by double digits every month since last summer. In May, the median existing home price rose to $350,300, up 24% year-over-year, according to the National Association of Realtors.