If you’re among many hopeful homebuyers, you might be facing a significant challenge — the cost of living. Prices for everything, from groceries to gas and eggs, have increased. This trend applies to home prices as well.

Even though it may seem like everything is pricey right now, you can still find ways to make homeownership a reality rather than just a dream. It might just require a fresh perspective on where you’re considering buying.

Consider Your First Home a Starting Point

A common mistake buyers make is thinking their first home needs to be their forever home or that it must fulfill all their desires from the beginning. The truth is, it’s really just a starting point.

When you buy a home, you begin to build equity, and that equity increases over time as home prices go up. Later on, if you decide to move—whether it's for a bigger place, a nicer neighborhood, or both—the equity you've accumulated can assist you in making that transition.

Instead of holding off until you can purchase your dream home in your perfect neighborhood, think about finding a place that suits your needs for the time being.

Widen Your Search to Uncover More Affordable Options.

If the steep home prices in your preferred neighborhood are keeping you from buying, consider expanding your search. By being open to different locations, you might discover some options that fit your budget. Many buyers achieve success by exploring nearby areas, and some even decide to relocate to another state.

According to a report from Realtor.com, the following markets are considered some of the best for first-time homebuyers this year (see chart below):

Moving to a different state isn’t for everyone, and it’s not always necessary. The right agent can assist you in discovering more budget-friendly options no matter where you currently reside.

If you're set on staying local, consider checking out areas just outside your top neighborhood. You might discover some affordable options that are still near your favorite restaurants, shops, and activities. Sometimes, even a move that’s just 10 minutes away can make a significant difference.

Working with a real estate agent who knows the local market is the best way to discover what's available. They can help you find those hidden gems in the area that you might not have thought about before. Some communities might have lower prices right now, but they're on the rise in value and appeal. This approach will help you buy your first home and position you to build equity over time.

In summary

Today's cost of living can be tough for many homebuyers. However, if you look into various neighborhoods and partner with a knowledgeable agent, you can make that important first move toward owning a home and securing equity for your future.

VHow far from your area are you willing to go to achieve homeownership? Let’s get together to discuss your options.