Definitely hitting first-time buyers hard; less so for other market segments where more equity comes into play.  Rates still impact, but less so.  The market for more expensive homes in the northwest is still very hot, though there are signs of cooling.  Not uncommon for nicer homes ($800K - $1.2M) to sell for 15-20% over asking, all cash.

Decent article on CNBC:

"Supply is leanest on the lower end of the market, which is likely why activity there continues to be weaker than on the higher end. Sales of homes priced between $100,000 and $250,000 dropped 27% from a year ago. Sales of homes priced between $750,000 and $1 million were up 26%. Sales of homes priced above $1 million surged 22% year over year.

Homes are selling quickly, however. Houses stayed on the market an average of just 16 days, the lowest on record for the Realtors. All-cash sales were still elevated at 25% of all sales. Investors made up 16% of all transactions, down slightly from April and from a year ago.

First-time buyers made up just 27% of all transactions, down from 31% a year ago. Affordability is clearly hitting them hardest, as rents are rising as well."

$408k is a deal. In the suburbs outside Toronto Canada price jumped from $770k 2 yrs ago to $1.3 - 1.5 million. Some have dropped a few hundred thousand  with rates up but still very unaffordable for a first time buyer. The 2008 U.S. housing crash will be hitting us in Canada soon.

Nuts !  But you got these guys out there saying there are more buyers than there is inventory because of millenials ???