If you’re like a lot of aspiring home buyers, there’s are major hurdles standing in your way — inflation, downpayment and credit scores. In the past 4 years, groceries to rent to home prices have have all gone up. Along with mortgage interest rates. Never say never!
But even when everything feels expensive, there are still ways to make homeownership more than an item on your wish list. You may just need to think about where, what and when you plan to buy a bit differently.
Think of Your First Home as a Stepping Stone
One of the biggest misconceptions among buyers is that their first home has to be their forever home – or that it has to check all the boxes of what they want right out of the gate. In reality, it’s just a place to start.
Once you own a home, you start to build equity, which grows over time as home prices rise. Down the road, if you want to move — whether to a larger space, a better location, or both — the home value you’ve gained can help you do just that.
So rather than waiting until you can afford your dream home in your ideal neighborhood, consider starting with something that works for now.
Expand Your Search To Find More Affordable Options
If high home prices in your favorite area are holding you back, it’s time to cast a wider net. By keeping an open mind and being flexible with location, you may be surprised at what’s possible within your budget. Many buyers find success by looking in surrounding areas – and some even choose to move out of state.
According to a report from Realtor.com, these are some of the best markets for first-time homebuyers this year (see chart below):
Of course, moving to a different state isn’t for everyone – and isn’t a necessity. The right agent can help you find more cost-effective options wherever you are.
For example, with one click you will see all homes, condos and townhomes on the market in the Santa Fe MLS now. Inventory has grown by 31% in the past year with many home prices dropping!
If you want to stay local, looking just outside your preferred neighborhood could help you find something you can afford that’s still pretty close to your favorite restaurants, shops, and activities. Sometimes, moving as little as 10 minutes away makes a big difference.
And the best way to see what’s available is set up a consultation who understands the local market and can help you identify hidden gems nearby. Emily Medvec can point you to communities you may not have considered that have lower price tags now and are steadily gaining value and appeal. What is important is to get the local market information to make better decisions.
Bottom Line
Today’s cost of living is a challenge for many homebuyers. What is important is to get more information in the process of exploring different neighborhoods and homes. For example, a condo or townhome may be a solid affordable option. However, sitting on the fence without information, may not be the best choice. Take a moment to schedule a consult with Emily Medvec to chat about your options. There is no obligation and no cost. Thank you for reading, Emily Medvec.