SPRINGFIELD, Mass. (WWLP) – Younger adults can’t afford to buy homes, even with lower than usual interest rates. Most of the time, they just don’t have the savings necessary.
Right now, the median sale price for a home in the Pioneer Valley is $325,000. The inventory of available homes for sale in July was down 9.8% with 710 on the market versus 787 homes on the market in July 2021.
Down payments can be as low as 3.5 percent for Federal Housing Authority loans. Even that will cost you $14,000 down for the median home, while non-federally assisted mortgages may require 10 to 20 percent down.
22News spoke with Cheryl Malandrinos of the Realtor Association of Pioneer Valley who said people trying to buy a home should not be discouraged.
“The reality is, what we’re seeing is a return to a more normal market. The last two and a half years has not been normal here in the Pioneer Valley or nationally. So we just have to realize that we are getting back to what would have been a more normal market in the Pioneer Valley now.”
Still, recent inflation has caused interest rates to spike sinking consumer confidence in the housing market. A recent survey released by Fannie Mae found that just 17 percent of respondents believe now is a good time to buy a home.
Cheryl advises both buyers and sellers to contact their local realtor to see what their options are as it’s better to start the process now than to wait to see where the market goes from here.
To save faster, experts recommend, starting early, setting clear goals, and using a high yield savings account or a CD, which grow your money at faster rates than traditional accounts.