NORFOLK, Va. — It’s no secret: buying a home can be stressful. Across the country, buyers are facing high prices and low inventory. But there is good news on the horizon, according to one local expert.
Norfolk resident Deneshia Bickley said she spent months – and money – chasing that American Dream. She finally closed on her first home in January, but it took a lot of work.
“I was discouraged. I had visited homes. I had paid for the home inspection. Went that far... in my opinion, I’m wasting money," Bickley said. “It didn’t go well at all. I was out looking at homes that were not in my price range at all.”
Meanwhile, Virginia Beach resident Ana Ruby Iglesia just started her search for her first home.
“Every year I’m like, 'Going to give myself another year! I’m going to give myself another year,'” she said. “I’m like, 'Ok I’m going to wait until it comes down but then, what if it never comes down?' So you just buy it now. Because what if right now is the lowest it can get?”
Many homebuyers say finding an available and affordable home has become a challenge. So what’s the problem?
Chartway Credit Union mortgage loan officer, Tiffany Kling admits: “Well, we are in the least affordable housing market in about 40 years.”
Kling runs the credit union’s free homebuyer workshop. It's a free seminar that helps people learn about buying or refinancing a home.
“Just kind of talk about how to purchase a home in today’s market," Kling explained.
She’s always keeping an eye on the fluctuations in the housing market.
Some economists attribute the rising home prices to supply and demand: there are just not enough homes available for everyone who wants to buy one. Experts say inflation isn’t helping prices for everything from labor to the bricks and wood needed to build a home are going up.
Mortgage rates are at nearly 8% but Kling said that’s changing.
“Mortgage rates are starting to come down at a slow pace. It’s definitely a slow decline," she said.
That slow decline is a good thing, Kling says, because if rates fall too much too fast, even more buyers could flood the market.
“Think back to 2020," Kling said. "People were doing things like waiving home inspections, they were paying 20 or $30,000 over the listing price and sellers were not helping out with closing costs.”
So mortgage rates are expected to get better. What about inventory?
“One of the things that’s contributing to the inventory being low is a lot of homeowners refinanced back in 2019, 2020, got that 3% rate and they’re not going anywhere," Kling said.
But she said inventory is also not as bad as it seems.
“As of at least April 2024 we have seen an increase in inventory," she said. "We’re starting to see more new construction.”
She said there are three things to know when purchasing a home.
Number one is having the proper reserves: Have money set aside for upfront costs like the home inspection, earnest money deposit, and any new furniture, appliances, or décor you want for your new place.
Secondly, keep an eye on your employee history: Don’t change jobs just before applying for a mortgage. Variable income or hours can affect your ability to qualify for a mortgage.
Lastly, improve your credit score: It doesn’t have to be perfect, but you want it to be the best it can be. That can affect your interest rates and monthly mortgage payments.
Chartway Credit Union is hosting another free homebuyer workshop on Saturday, July 20 in Virginia Beach. For more information and to register, visit their website.