Homeowners, who have benefited from property values going up, are contributing to prices rising to record levels, a housing economist said, as profits from selling their homes are helping to finance their next purchase, fueling the trend of expensive homes in the market.Read more: Compare Current Mortgage RatesOn Tuesday, the CoreLogic S&P Case-Shiller Index showed that home prices rose by 6.3 percent on a yearly basis in the 10th consecutive monthly price gain for the sector.
Read more: How to Calculate How Much House You Can Afford'What higher homeownership costs mean for first-time buyers is that it is increasingly more unaffordable and challenging to enter the housing market,' Hepp said. 'Given the continued expectation of increasing home prices, only a decline in mortgage rates and/or an increase in wages will help improve the affordability gap.'As prices have risen to record levels, American homeowners have seen the value of their homes soar.