First-time homebuyers are facing a tough real estate market.
Julie Nguyen, a real estate agent in Tulsa, Oklahoma, is advising clients to act quickly when they see something they like.
"When you see a home that hits the market, you need to go and look and be prepared to make an offer. If it's something that meets your needs, you cannot wait," Nguyen said.
In the Tulsa market, Nguyen says homes have appreciated over the past four years by an average of $25,000 per year. That is in line with research from the residential real estate website Zillow, which states that the cost of starter homes across the nation has increased by more than 54% over the past five years.
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To get into those starter homes, real estate app Redfin reports potential homebuyers must earn roughly $80,000. The Bureau of Labor and Statistics says the median weekly wage is $1,143. That comes to just under $60,000 annually.
Mortgage broker Jennifer Freet potential buyers should start by getting a loan "prequalified letter."
"There's a lot of times where they're not even showing homes without a letter. And a lot of times where the seller will not even accept an offer without a pre-qualified. Or a pre-qualification," Freet said.
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Mortgage rates are also on the decline, but Freet said there are also programs that are catered to first-time homebuyers.
"Down payment assistance — anything from zero down to 2.25% down to 3% down," she said.
Once a potential buyer is qualified, it's important they stay qualified, Freet said. She warns against buying big-ticket items, closing credit cards or making any major financial changes while attempting to buy a house.
Research suggests first-time homeowners usually live in their first home for three to seven years.
