Experts: Housing market still tough for first-time buyers

Current homes are around 5.7 time the income of the typical first time buyer

InvestigateTV - A recent report from NerdWallet, found homes are still listed about 5.7 times the income of first-time home buyers, which according to experts, makes it difficult for new owners to make their first purchase in the market.

Elizabeth Renter from NerdWallet said buyers should typically look for homes that are three times their yearly income.

Renter said the fact that inflation continues to impact household budgets, plus her prediction that interest rates will remain high, means a lot of first timers may need to wait to buy.

While waiting for the market to be more buyer friendly, Renter suggested two things first time buyers can do:

Continue to save for a bigger down payment: The more you put down, the smaller your mortgage and monthly payment will be.

Work to raise your credit score: The best rates are given to the buyers with the highest scores so even if your score is good, it could always be higher.

Renter said these two things can put in the best position to qualify for a mortgage.

She said if you do see prices come down, be patient and research the specifics of your housing market and talk to local realtors and mortgage specialists.

Finally, Renter advised using an online mortgage calculator to plug in different interest rates in order to see how it affects monthly payments.

Rachel DePompa

Rachel DePompa

Rachel DePompa is NBC12's On Your Side Investigator. Before joining WWBT in March of 2008 Rachel worked in Roanoke, Bristol and Harrisonburg.