You’ve very likely heard the stories. Maybe you or someone you know has tried to buy a house, but lost out because the competition is so tough. One in three people is trying to buy a house right now, and there aren’t enough houses to go around, says Neighborworks, and CEO Marietta Rodriguez.
“The competition is stiff throughout the country. Unfortunately Indianapolis is feeling what a lot of buyers across the country are feeling,” she said. “There is just a general lack of inventory, but particularly a lack of inventory on the affordability side of the market.”
Rodriguez said it’s tough for people who are trying to buy a home for the first if they lose out to cash offers.
She said Neighborworks’ recent survey showed many people at a disadvantage.
“Sixty-three percent of our African-American responders felt like they wouldn’t be approved for a mortgage because of lack of resources and other obstacles, such as credit,” she said. “The wealth gap between Black and white Americans is growing and so is the home ownership gap.”
But, that’s not limited to communities of color. Rodriguez said credit issues plague many people applying for a mortgage and also affects people who want to rent a house, especially at a time when competition for rentals is almost as harsh as for buying a home.
Rodriguez pointed out that competition got stronger during the pandemic and buying has gotten tougher.
“Having a home means safety and security,” she said. “Your home is your center. It’s your hub for everything and it’s even more so during the pandemic.”
So, if you want a home of your own, Rodriguez said you need to be mindful of your credit and take advantage of programs that can let you know what you need to do to make getting approved easier and how to improve your credit score.
She said watching out for any scams and knowing how to spot them is also important.