The housing market is dealing with several"tricky" dynamics, said Tracy Kasper, president of the National Association of Realtors."What we've experienced over the last probably 12 to 18 months is what I really like to call a leveling," Kasper said Thursday during CNBC's Financial Advisor Summit.
During the Covid-19 pandemic, first-time homebuyers found it hard to compete with other buyers who had more cash to spare, Kasper said.Higher rates add to monthly payments, which can mean it's harder to qualify for a mortgage. Last year, lenders were denied loan applications due to"insufficient income" more often than any other point since records began in 2018, according to a new
"In most cases, income did not increase at the pace of average mortgage payments," certified financial planner Barry Glassman, founder and president of Glassman Wealth Services in McLean, Virginia, recently told CNBC. Given these obstacles, Kasper said real estate insiders are desperately seeking ways to increase inventory, including pushing for government incentives such as tax breaks for sellers.