HUNTSVILLE, Ala. (WHNT) — For young and ambitious adults looking to become first-time homeowners, you can expect to dig deep to keep up with interest rates in the Rocket City.
As new residents and experienced homebuyers continue to flood the Huntsville-Madison area, first-time homebuyers are finding it hard to compete in the housing market.
For a hopeful first-time homebuyer, Morgan Biletski says it’s a matter of “weighing your options.”
“Renting a house versus renting an apartment is a lot more difficult,” she said. “Houses are harder to find than apartments because you can turn a corner and find an apartment any day.”
“I’ve had to start over a few times just because there are people that come in with cash offers or have higher qualified loans and they can offer more on the table,” Biletski explained. “It’s tough not being able to get into our own space when I find something that I like and I feel like is suitable, just because I can’t necessarily meet the price that other people can.”
Over the past year, interest rates have nearly tripled.
Homebuyers in Huntsville can expect anywhere between 5% and 6.5% interest on a home; making the option to rent look a little more appealing. But, experts say these interest rates are a good sign.
“We’re going to settle out in the five’s for a while,” said Chris Hulser, the president-elect of the Huntsville Area Association of Realtors. “But that’s a good thing because… it was the only way for the inventory to start coming back up and for buyers to really be able to focus on buying a house and not panic every time they saw a house come on the market that it was going to be sold with 18 offers and they couldn’t compete.”
Hulser said it’s important to not let the number scare you away from purchasing a home.
Experts advise house hunters in the area to do thorough research on a property and know their buying power before putting a bid on a house.