It’s the most profitable time to sell a house since the Great Recession started in late 2007. But first-time buyers are increasingly scarce.
More Americans are qualifying for mortgages, yet minorities still get disproportionately rejected.
Three new industry analyses released Thursday show that the recovering economy has produced a divided U.S. housing market. Where people live, their age and the color of their skin have largely influenced who has benefited as real estate continues to heal from the bursting of a mortgage bubble that triggered the worst economic downturn in nearly 80 years.
Budding sales growth over the past year has overwhelmingly helped existing owners who are seeking an upgrade. But the millennials buying their first home are being priced out of the market because student debt has prevented them from saving. And a major gap exists among who qualifies for a mortgage even as the overall approval rate improves.
Between July and September, sellers unloaded their homes for an average of $40,658 more than they paid for their properties, according to RealtyTrac, the California-based real estate information company. This was the largest profit recorded since the third quarter of 2007, although it remains below profits averaging in excess of $100,000 during the height of the boom in late 2005.