First-time home buyers are facing a tough real estate market.
Julie Nguyen, a real estate agent in Tulsa, Oklahoma, advises her clients to act quickly when they find a home they like.
“When you find a home on the market, you need to go and see it in person and be prepared to make an offer on it. If it fits your needs, you can’t wait,” Nguyen said.
Nguyen said Tulsa’s housing market has seen home prices rise an average of $25,000 a year over the past four years, which is consistent with research from real estate website Zillow, which said prices for new homes nationwide have risen more than 54 percent over the past five years.
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To purchase that first home, potential homebuyers would need to earn roughly $80,000, according to real estate app Redfin — the median weekly wage is $1,143, according to the Bureau of Labor Statistics — which works out to just under $60,000 a year.
Mortgage broker Jennifer Fleet says potential buyers must first get a “prequalification letter” for a loan.
“Oftentimes they won’t show you a home without the letter, and sellers often won’t accept an offer without a pre-inspection or pre-qualification,” Fleet said.
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Mortgage rates are also declining, and there are programs available for first-time homebuyers, Fleet said.
“Down payment assistance can range from zero to 2.25 percent or even 3 percent,” she said.
Once a potential buyer is qualified, it’s important to stay qualified, Fleet said. He warned against making big-ticket purchases, canceling credit cards or making any major changes to your finances while shopping for a home.
Research shows that first-time home buyers typically live in their first home for three to seven years.
