There’s no denying the housing market has been on fire. According to the National Association of Realtors, the median U.S. home price increased 16% to just over $350,000 over the past year.
With many houses selling for over asking price with multiple offers, how can first-time buyers compete in what seems to be a firmly entrenched seller’s market?
While many experts are hopeful that the blistering pace of price increases will slow in the coming year, there are many things home buyers can do now to set expectations and increase their chances of finding a new home.
In a hot housing market, you may have to compromise on your wish list to secure a home. According to Victoria Cornell, you don’t have to find your forever home right off the bat. “Purchasing your first home is exciting and is a big life goal for so many.”
It can be tempting to stretch your budget in an attempt to score your dream home. However, allocating a disproportionate amount of your total income to homeownership is known as being “house poor” and can negatively affect the rest of your budget.
One of the essential rules in real estate is “location, location, location.” While the location isn’t everything, it certainly falls under the category of something you can’t change about a house after you’ve bought it.
The true cost of homeownership is much higher than just the monthly mortgage payment. You are also responsible for things like property taxes, insurance, HOA dues, utilities, and more. One of the most significant expenses the first-time home buyer can forget to account for is maintenance and repairs.