(NewsNation) — Home prices nationwide have skyrocketed to an average of $375,000 as inflation, interest rates and an ultra-competitive market have pumped up the cost for homes. Despite wages rising in the U.S., many Americans have been priced out of the market.
In U.S. cities like Phoenix, Tampa, Orlando and Jacksonville, increasing home prices and an influx of buyers have placed a burden on many prospective home buyers.
“This market is just absolutely crazy, overpriced,” said home buyer Christine Garvine. “It’s been a struggle. Houses that maybe a couple of years ago I might be able to afford, I can’t now.”
Wages are up 6% nationwide but analysis by Redfin found buyers would need to increase their income by 34% to afford median homes in the market.
“I’m almost defeated, really I am,” Garvine said. “I’ve looked at a lot of properties, but it’s depressing.”
Miami realtor and CEO of Elite Realty Partners in Miami Tenisha Williams told NewsNation earlier this week buyers on the market need to practice aggressiveness, patience and a willingness to enter bidding wars to find success in the market.
“People need to be ready to bid on these homes,” Williams said. “Even now, we put an offer in for one of our buyers, there were 76 offers. Patience is a virtue, and I believe buyers need to pack their patience and be willing to submit aggressive offers.”
Even buyers who have had luck in the market said the process was a taxing one.
“I got outbid many times,” said homeowner Camdyn Scofield. “Most of the time I didn’t even get past the offer before somebody came in with a cash offer.”
Interest rates have risen almost 5%, but some realtors argue it may aid buyers.
“To delay the purchase process just a little bit, some of the buyers that are being displaced in today’s market because of rising interest rates are going to have more opportunities,” said Florida realtor Ron Wysocarski.
Williams said the rise in interest rates of around 5% is a “big deal” as it means buyers could be paying up to $500 more on their monthly mortgages.