Answers by Randa Martin

Buying your first home right now can definitely feel frustrating, and you’re not alone in feeling this way. Many renters are hoping their mortgage payment will be similar to their rent, but the current market has made that more difficult. There are a few main reasons homes are more expensive right now. First, inventory is still low in many areas. When there are fewer homes available and many buyers looking, prices naturally rise. Second, interest rates increased compared to a few years ago. Even if home prices stayed the same, higher rates increase the monthly payment, which is why the numbers can feel so different compared to rent. Third, construction hasn’t kept up with population growth for years, so there simply aren’t enough homes to meet demand in many markets. The big question many buyers ask is whether prices will come down. While markets can shift, most experts expect prices to stabilize or grow more slowly rather than drop significantly in many areas. A large drop would usually require a major increase in inventory or a major economic shift. Instead of waiting for the “perfect” market, it can help to look at a few strategies: Explore first-time buyer loan programs that require lower down payments Ask your agent about seller concessions that can help lower your upfront costs Consider slightly different neighborhoods or property types (townhomes, condos, smaller single-family homes) Work with a lender to see if rate buydowns could lower your monthly payment Owning a home is often a long-term investment, so many buyers focus on what they can comfortably afford today and plan to refinance if rates drop in the future. The best step is to speak with a local lender and agent who can show you what your real purchasing power looks like in your specific market and help you find options that may not be obvious online.