High prices and wage stagnation a challenge for first-time home buyers

Report: Low inventory and rising interest rates impacting market
First time home buyers
First time home buyers(INVESTIGATETV)
Published: Jul. 19, 2022 at 12:47 PM MST
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InvestigateTV - A new study by NerdWallet found that in the first quarter of 2022 homes were listed at six times the typical first-time home buyer’s income.

NerdWallet’s Elizabeth Renter said there are two reasons: high prices and wage stagnation.

“You might not be competing with five other buyers right now because some have left the market due to high prices and others because of rising interest rates, but homes are still going for above list price,” Renter said.

If you are a first-time home buyer, she urged awareness of interest rates and how they affect your bottom line - even a fraction of a percent change could cost you tens of thousands of dollars over the life of your loan.

Renter also advised buyers to talk to a real estate agent in your area before deciding to buy. She said agents will be able to set expectations for your local market.

For further information, HUD.gov has a free resource guide to home buying programs available in your state.