SOLON, Iowa (KCRG) – According to the National Realtor’s Association, home prices continued to climb double digits last month as inventories hit historic lows.
This makes it increasingly difficult for new home buyers to enter the market.
“It’s been pretty eventful,” said Joe Klingelkutz of Iowa City.
Klingelkutz has been looking for his first home for over a year. He said he couldn’t find one he could afford because house prices have skyrocketed. Emilie Walsh, associate broker for Keller Williams Legacy Group, said prices have increased due to lack of inventory. And most of the people who buy a home are part of the baby boomer generation. She said the baby boomer generation has more experience buying homes and can make more attractive offers than first-time buyers.
“They’ve been through the home buying process before,” she said. “Even if you are buying a second time or selling your house, you have done it at least once.”
She said the reason the baby boom generation is in the market is because they are looking to downsize and a lack of inventory means a lack of options. Downsizing to a smaller home means they are competing with first-time home buyers on inventory.
Walsh said, in simple terms, that more experienced homebuyers can make offers more attractive. Klingelhutz does not give up hope of finding a new home.
But as he continues to research, he wants others eager to enter the market to remain patient.
“Giving him time and patience is something I had to learn to do on my own, and I recommend it to others,” he said.
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