(WTNH) – The struggle to find affordable housing continues as rent and home prices are experiencing double-digit increases. We are stretching your dollar with some ways that homebuyers can find a deal.
When Jonathan Weldon and his family relocated from Shreveport, Louisiana to Georgetown, Texas last summer for his job, he says they had no problem selling their home.
“We got about $5,000 more than our asking price and that made us feel really good,” Weldon said.
But when it came time to buy a new home, the father of one says it has been a struggle.
“People were asking well above asking price and making bids, even cash offers to get these homes and we just couldn’t compete with that,” Weldon said.
As demand continues to exceed supply, median home prices hit a record $405,000 in March, a more than 13 percent increase from March 2021. Meanwhile, rent prices have increased 17.1 percent from this time last year.
“We’re really seeing people getting squeezed entirely out of the housing market. Even though wages have gone up, they’ve not been able to keep pace with the rapid increases that we’ve seen in home values. There just also isn’t much supply on the market, and of course, as mortgage rates go up, builders will be less willing to build homes for the market, and that means the supply remains constrained,” said Diane Swonk.
While some experts predict some relief will come this fall, experts say there are things future homebuyers can do now to help find a deal. First, start with broadening your search.
“Do you need to live close to your work? If not, you could very well look at a midsize city or a suburb within a slightly longer commute,” said George Ratiu.
The second tip is to sweeten your offer.
“So, for buyers, it’s important to keep in mind that the price of a home is just one aspect of the offer. Being flexible with some of the terms can go a long way towards making an offer appealing,” Ratiu said.
Finally, keep an eye on inventory and be patient.