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Experts: It's a good time for first-time homebuyers
FOX 26 Reporter Randy Wallace spoke with one realtor who says now is a good time to buy a house for first-time homebuyers.
HOUSTON - No doubt mortgage rates have increased substantially, but some experts believe that can be huge advantage for first-time home buyers.
"When you're paying rent somewhere, you're paying a 100% interest rate, so what's a six percent interest rate," said Tricia Turner CEO of Tricia Turner Properties Group. "When you're paying rent, you're paying someone else's mortgage. How do you build wealth like that?"
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Buying property is one of the safest ways to invest your money.
While the pandemic was good for the housing market, it pushed first-time home buyers off the playing field.
"During COVID, we watched prices escalate, we watched multiple offers coming in," Turner said. "20, 30, 40 offers on a property, basically it bumped first-time home buyers out of the market."
But higher mortgage rates can mean fewer buyers with more inventory to pick from.
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If you're a first-time home buyer, you could qualify for various programs and grants.
"There are even 100% financing programs now for first-time home buyers with grants," said Turner. "So, you can literally get into a house right now in today's market with zero down, and possibly help with your closing costs to bring your rate down, which is crazy."
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How will the home real estate market look in 2023?
Looking to buy a home or sell one? We asked Cathy Trevino with the Houston Association of Realtors for her outlook on the Houston real estate market for 2023.
Some experts believe the housing industry is teetering towards a buyer's market and now is the time to act.
"If your thoughts are I want to buy a home, get out now while there are fewer buyers and sellers are feeling it. They're anxious to sell, so they're willing to deal," Turner said. "They're going to deal with you less when there is less competition and more buyers."
If you're thinking about becoming a first-time homeowner, talk to reputable lenders and realtors to see what you might be able to qualify for.