Costs of homes increase because of fewer house on market

CAPE GIRARDEAU, Mo. (KFVS) - Prices are high and so is demand. It’s a hot market for homes right now, and first-time home buyers are going to have to shell out a pretty penny for the American dream.

“I’m not sure that as a new buyer, I’m not sure if I get the best bang for my buck,” Derrick Williams, first-time home buyer said.

Williams said the hunt to buy his first home was not exactly what he expected.

“It’s just like, uh, because for example if a home is $400,000 it should be I think it should speak to that value. It seems that some of the higher end prices just don’t have that wow factor,” Williams said.

According to Elaine Edgar, realtor and owner of SEMO Home Realty, high prices are something current buyers can expect.

“Prices are definitely higher right now, as far as the exact amount that I probably couldn’t tell you, but I would think it’s in the double digits,” Edgar said.

She’s not far off. CNN reports that in April the average price increased 14. 8% from a year ago.

Edgar blames that increase on fewer homes on the market, but she said demand is still high.

“People are still searching for homes because again it is still the American dream,” Edgar said.

“Regardless of what the market is like, costs, mortgage rates, people do need a place to live,” Bill Cole, Broker of Edge Realty said.

Cole has been in real estate for almost 2 decades, he calls the current market the biggest challenge for first-time buyers.

“They are going head-to-head with other buyers that have more cash or more money to put down so those offers look better, ” Cole said.

He recommends buyers like Williams, put in an offer before the sale is gone.

“I think rates are going to continue to go up here for bit, so I still recommend buying sooner than later,” Cole said

Edgar suggests that buyers look into a lender, especially if they are buying a home for the first time.

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