Housing Market Squeezing Out Young Homebuyers?

A housing crunch could leave young homebuyers out in the cold.

Fewer homes are available, and ones that do hit the market are proving to be pricey.

People looking to buy their first home are often the first ones squeezed out of the market.

But financial institutions are working to help them finally get the keys.

You have to act fast.

“Those homes are not lasting quite as long on the market,” says mortgage consultant Audrey Kankelfritz.

Realtors at Park Company say there are more than 20 percent fewer homes on the market than just last year.

“Definitely maybe not enough inventory for those first time home buyers coming up,” explains Park Company sales associate Amanda Midthune.

It’s those first time buyers that are having the hardest luck buying a house.

Inexpensive homes, under $200,000, simply aren’t as abundant.

Midthune adds, “It definitely does create a little bit of that gap for the first time home buyers that are kind of just getting into the market right now.”

It’s not just about money for potential homebuyers, it’s also about competition.

Realtors say some homes get as many as ten offers the same day they hit the market.

“Someone’s always gonna lose out when you’re in that situation,” adds Midthune.

Mortgage consultants like Kankelfritz say some buyers have to temper their expectations in the face of bidding wars.

She explains, “People are just kind of having to reconsider, maybe their wants and needs, when it comes to purchasing a home.”

Buyers are also encouraged to come prepared, getting pre–approved before they look at a loan.

“Once you’re meeting with your realtor and you find a home that you’re interested in, you have that pre–approval letter ready, and you’re ready to make an offer right away,” Kankelfritz adds.

One bank is going further to help young people buy a home.

Gate City Bank started the Better Life Student Loan program, which helps people reduce student loan payments so they can afford a home loan.

Gate City Director of Lending Kevin Hanson says, “It lowers their payment sometimes a hundred to a hundred and fifty dollars, and that’s enough in their budget to allow them to qualify for a loan.”

Even then, finding a home could still be tricky.

Realtors expect the Fargo housing market to remain tight for years to come.

Realtors say some potential homebuyers have been looking for years for the right home.

Some people are simply having to settle for a place like a twin home or a town home.