Dive Brief:
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The number of applications for new mortgages dipped 22% last month, and housing industry analysts again are blaming the lack of first-time homeowners entering the market.
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At the same time, the average size of home loans grew from $300,000 in October to $307,000 last month, the Mortgage Bankers Association said on Thursday.
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The association estimated that 28,000 homes were sold last month, 22.2% fewer than in October, which finished with 36,000 purchases.
Dive Insight:
As first-time buyers continue to rent or live with relatives instead of buying homes—largely due to ongoing tight credit conditions—more homebuilders have gravitated toward a wealthier demographic with willing customers—albeit a limited number of them. The result is an increasing inventory—and more sales—of high-end luxury homes.