Understanding the forces driving the perfect storm in the real estate market.
Christine Egan, a massage therapist living in Putnam County, New York, has been eagerly searching for a house for almost two years now. She and her 16-year-old daughter, Isabel, have been renting a townhouse in a suburban community located more than an hour north of New York City.
Ms. Egan describes the entire process as extremely frustrating. “The biggest problems are finding homes in my price range, and then when I do, being outbid by someone else,” she told The Epoch Times. In this region, houses in the $350,000 to $400,000 range are few and far between, and many of them require a tremendous amount of work.
“I can’t believe that these homes are selling for that much money and still need major renovations. After making the down payment, I’ll have no money left to fix things,” Ms. Egan said.
What she’s looking for ordinarily wouldn’t be that difficult to find: a ranch-style home with three small bedrooms and a little yard.
“I want to stay in the same area, but I’m now faced with homes priced at $500,000 or more if I want something that doesn’t need serious work,” Ms. Egan said. “They’re beautiful homes, but I just can’t afford them.”
She said that some of the homes she’s seen in her price range need new kitchens, bathrooms, appliances, major plumbing, or electrical work. Mortgage rates, now at about 7.5 percent, are also hampering what she can afford.
“The only good thing is that I’m not in a rush to move, so I can play the waiting game,” Ms. Egan said. “I don’t need anything big, as my daughter will probably be going to college in a couple of years. I just want to find something I love that needs just a few cosmetic upgrades.”
For now, she wants to remain in suburban New York to be close to family and friends. Her situation isn’t unlike many in this country.
The National Housing Conference, a Washington-based coalition of U.S. affordable housing leaders, warns that there’s an escalating housing affordability crisis in the United States.
By Mary Prenon
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