Is home ownership becoming less affordable?

CHICOPEE, Mass. (WWLP) – As housing stock dwindles the purchase prices rise due to the competition between potential buyers. This constant increase is pricing many people out of buying a home.

The housing market, like the stock market, generally operates on a 10-year cycle with peaks and valleys and, unfortunately, right now the housing market is still peaking.

There is always hope the market will balance and there will be more people listing houses for sale, creating more inventory. Real estate professionals say now is the time to prepare for when property becomes available.

“It’s important for people looking to buy a home to work with a qualified and educated real estate agent because they are going to be the best ones to tell them what’s affordable and what’s not, help them navigate the loan process, direct them to the right lenders depending on the loan program they need, help them find those deals, and then negotiate to a price they can afford it,” explained Bryan Kaye, President and broker at BKaye Home Solutions.

For example, if you are looking at a $200,000 house you should be prepared to have $18-20,000 set aside for the down payment and closing costs.

Kaye said he is seeing signs of the market getting better. He is not seeing as many bidding wars and sellers willing to negotiate at asking or even below the selling price.

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