Housing Watch: Challenging times persist for buyers

FRESNO, Calif. (KFSN) -- Challenging conditions in the real estate market have forced many buyers to tone down their expectations.

Home prices have gone up faster than incomes these past few years.

Bankrate analyst Jeff Ostrowski says many homeowners who bought or refinanced at a mortgage interest rate between 2 and 4% are in no hurry to move and buy another home.

That impacts the available supply of homes.

"That's actually part of the reason that home prices are expensive right now. You've got so many people who locked in 3% mortgage rates and nobody's gonna trade a 3% mortgage rate for an 8% mortgage rate," explained Ostroski.

New homes are being built but inventory remains low in the Valley.

For many home buyers, Ostrowski says now is actually a worse time to buy than it was a year ago.

"We've got mortgage rates near 8% and it doesn't seem that's going to change in the near future. So maybe nine months to a year ago, the conventional wisdom was, hey just wait out this market. We're going to go into a recession. The housing market is going to come back to earth. And that hasn't happened," said Ostroski.

Ostrowski says it is hard to imagine a sharp decline in home prices in the near future but adds there's no need to wait if you come across your ideal home.

"If you're ready to buy, if you're financially prepared, if you need a home then I'd say go ahead and buy since there's no guarantee things are going to be any better a year from now," Ostroski said.

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