While working with a home buyer we found a home listed in his price range. The home was listed for an amount that the buyer could have afforded but, to beat out the other offers he would have had to go over his limit.
I see this all the time with houses that are “priced to sell”. Buyers who want to buy a home for less than $150,000 are hit the hardest as they end up competing against investors.
Those investors pay cash or put a significant amount down which make their offers more attractive than the first time home buyers FHA with less than 5% down.
The bargain-priced houses that seem so affordable or too good to be true are often out of reach for first time home buyers.
Home prices have gone up and at a much faster rate than wages. This is good for homeowners but not so great for people who would like to become homeowners.