Pricing out of the housing market in Charlotte, NC, can be a difficult and daunting experience. Many buyers may not buy their desired home due to rising home prices.
Charlotte has a median listing home price of $405K and a median household income of $56,367. It’s no wonder housing affordability is such a struggle for many. The situation is challenging for low- and medium–income earners and first-time buyers.
Let’s explore what it means to be priced out in Charlotte and discuss the options available if you want to buy a home.
What Does It Mean to Be Priced Out in Charlotte, NC?
Being priced out means buying an entry-level property with the amount of money you have is impossible. It is difficult for first-time buyers to get their foot in the door in the current housing market, where prices are skyrocketing.
Several factors contribute to being priced out of a housing market:
- One of the major influences is inflation. This is the price increase over time and a decrease in your purchasing power. Wages don’t rise at the same rate as inflation does. Thus, your hard-earned savings won’t go as far as you hoped when trying to buy a house.
- Competition among buyers is another factor in being priced out of the housing market. More buyers are vying for homes than homes available in some areas. This drives prices up and leaves those with lower budgets behind. They can no longer compete with others who offer more money for the same property.
- The limited housing availability is yet another factor that makes people priced out. Buyers need help finding something that fits their budget when few properties are on the market.
What Can You Do If You Are Priced Out of Buying a Home?
Buying a home is one of the significant goals many people have. However, it is sometimes difficult to achieve because of rising home prices.
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Here are a few things you can do if you are priced out of buying a home:
1. Create an emergency fund.
An emergency fund allows you to handle unexpected expenses without going into debt. Creating one is easier said than done since
most households already have limited funds. However, creating an emergency fund will give you more financial security overall.
2. Save up more money before you make an offer on a home.
This may mean renting longer, so you can build up your savings and wait out the market until prices come down. Depending on the area in which you live, it could take a couple of years for this to happen.
Focus on improving your credit score in the meantime. You can do this by reducing or eliminating debt and making timely payments on bills every month. This makes it easier for lenders to see that
you’re a reliable borrower who can handle long-term commitments.
3. Invest your savings wisely.
Don’t just park your money into a standard savings account when saving up for a house. Look into different investment strategies.
Consider putting some of your money into high-earning investments, such as stocks. This can help grow your nest egg faster and give you access to more funds when you’re ready to buy.
4. Reduce your monthly expenses.
Reducing your monthly expenses is essential for saving for a down payment. Reducing expenses gives you more monthly money and can help reduce your debt burden.
5. Look for areas that aren’t as competitive yet have good prospects for growth.
There is less competition from other buyers in these areas. Thus, there is a more significant opportunity for bargains.
6. Look outside of your preferred area.
Another option is to look outside the neighborhood you originally intended to buy from. For instance, consider expanding your search area slightly if you are looking for an upscale neighborhood but can’t afford it.
You can look into nearby neighborhoods that are less expensive. Some of them still have amenities that may suit your lifestyle.
7. Stay patient and wait for better deals on homes.
Many buyers rush into a purchase because they fear missing out on their dream house. Sometimes this could mean overpaying for something not worth it in the long run.
You can find something more suitable within your budget by
patiently waiting for better deals on homes.
8. Adjust your expectations
It may not be possible to afford your ideal home in today’s tight housing market. You may have to give up some of your wish list items or buy a fixer-upper to make things more manageable financially.
It’s essential to be realistic and understand that you won’t get everything you want in this environment. You can still own a great home in the end by making adjustments.
9. Consider alternatives to homeownership.
Don’t shy away from exploring alternatives like renting or living
with family until prices come back. Both solutions still give you access to suitable housing.
This provides security should things like job loss or unexpected medical bills happen.
10. Research the Government’s loan programs.
Government-backed loans such as FHA, VA, and USDA loans provide more affordable home-buying options. FHA loans need lower down payments and are designed for low-income borrowers.
The Department of Veterans Affairs guarantees VA loans. This type of loan aims to provide veterans with access to affordable housing. USDA loans are geared towards low-income households in rural areas. They help individuals buy safe homes in rural communities. USDA loans have no money down payments if you qualify.
11. Seek professional advice
Hire an experienced real estate agent who can navigate today’s market. Nancy Braun of Showcase Realty can guide first-time buyers through all the home-buying steps.
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An expert like Nancy Braun can negotiate on your behalf. You won’t end up paying too much for something outside your budget.
Nancy Braun is a Dave Ramsey Trusted Provider (ELP) and recommends you consider Dave Ramsey’s 7 Baby Steps to get yourself into a position of success financially. Nancy can advise you on your next steps towards home ownership.
Buying a home can still be achievable, even if current market prices have left you priced out. You can still find a home that works within your budget with the help of an experienced real estate agent.
Showcase Realty helps first-time home buyers navigate the complicated home-buying process. Our team will work with you, from searching for potential homes to negotiating prices.
Everyone should have access to their dream home, no matter their financial situation. Don’t let high market prices discourage you from pursuing your dream. Contact Showcase Realty today at 704-286-9844 for more information!