The pandemic housing market continues to weigh heavy on home buyers with the surge in home prices, the threat of increasing mortgage rates and concerns over job stability all contributing to the low sentiment of homebuying.
“It was traumatic, it’s hard for me to remember these things because it was a time of trauma,” Victoria Vasquez recently closed on a new home in the suburbs. Her experience was not unique to her, it echoes hundreds of other home buyers going through it as well.
“I think there were many times where we were like we are just going to rent, we are going to tap out,” Vasquez said.
Vasquez is experiencing the house market on both ends. She sold her condominium in the city earlier this year.
That sale was the easy part as the condo was sold in weeks and turned a profit. The profits did not last; they were gone when it came time for her to put in an offer on her new home in the suburbs.
“It takes the wind out of your sails so to speak, you are excited about the profit that you made and all of a sudden you have to make the same type of offers on the properties that you are looking, at and that was very short-lived,” Vasquez said.
As affordability constraints continue to weigh on the housing market, Fannie May says its Home Purchase Index Sentiment decreased to 71.8 points in January - its lowest level since May 2020, according to the organization's National Housing Survey.
The difficulties of home buying are not lost on real estate agents.
One managing broker who spoke with NBC 5 says the best thing a buyer can do is go through an agent for the purchase of that new home.
“There are certain facets of the deal that can be navigated through to help that buyer win that deal over time, if they actually take advice," said Deena Schencker, a managing broker. "Gone are the days of going online calling somebody and just putting in an offer and expecting to have it be accepted right away."
A new wave of home buyers is contributing to bidding wars across the country. Younger first-time buyers who once lived at home are now putting in offers.
“They are looking to see what is coming on the market, most of them are contacting real estate brokers and saying ‘I want to see this, I want to see this now,' Schenker said. "Truth about millennials is they have the disposable income, instead of spending it on Starbucks, now they are spending it on home ownership."
Interest rates are also set to hike in the coming months, making a home purchase even more expensive. However, the message from Schencker is to stay patient and work with your agent and lender to buy that home.
“As long as you are patient as long as you follow all of the advice that you are receiving from your lender and your real estate professional you will eventually find your perfect home,” Schencker said.
Additional information about the Fannie May survey can be found here.