JACKSONVILLE, Fla. — Buying a home has gotten expensive. Between higher home prices and mortgage rates, a lot of people feel like owning a house just isn’t realistic anymore.

But Andrew Linn, owner and broker of ERA One Team Real Estate, says buyers may have more options than they think.

Linn joined In Depth with Kristine Bellino to talk about what’s happening in today’s housing market, why sellers are becoming more flexible and what both buyers and sellers should know.

Buying a home isn’t cheap

A recent Redfin report found that Americans now need to make about $110,000 a year to comfortably afford the typical home that’s for sale.

Linn said that number sounds about right.

Here in Northeast Florida, he says the median household income is closer to $75,000 to $80,000, so there’s definitely a gap between what many people make and what homes cost.

Sellers are starting to work with buyers

Linn says one big change he’s seeing is that sellers and builders are getting more flexible.

That can mean:

Lowering the price
Helping with closing costs
Buying down a buyer’s mortgage rate
Offering incentives worth $10,000 to $30,000
Even helping someone get out of an apartment lease

According to Linn, those kinds of incentives are making it easier for some people to finally buy a home.

Even renters may have more options

One thing Linn says he’s seeing more often is builders helping buyers who are still stuck in a lease.

If someone has several months left on their apartment lease, some builders may help cover those costs so the buyer can move into a home sooner.

He says it’s another example of sellers and builders getting creative to attract buyers.

Homes are still selling

Even with higher prices, Linn says homes are still moving if they’re priced right.

About 14% of homes are selling above the asking price, and the average time a home stays on the market has dropped from about 41 days to 29 days compared to this time last year.

What about interest rates?

Mortgage rates are still sitting around 6.6% to 6.7%.

Linn doesn’t expect rates to change much over the next several months, and he doesn’t think buyers should keep waiting for rates to go back to where they were during the pandemic.

He says many sellers and builders are already helping buyers by paying to lower their mortgage rate, making monthly payments a little more manageable.

Northeast Florida is still attracting buyers

Linn says people continue moving to Northeast Florida because it’s still more affordable than many other parts of the state.

Compared to Central and South Florida, he says buyers can still find better value in this area, which is keeping demand strong.

A bill in Congress could help increase inventory

Linn also talked about a bipartisan bill called the More Homes on the Market Act.

If it passes, homeowners could keep more money tax-free when they sell their homes. The hope is that more people would decide to sell, putting more homes on the market and giving buyers more choices.

Linn’s advice for first time buyers

Linn says don’t feel like your first house has to be your forever home.

He recommends talking with a real estate professional, figuring out what fits your budget and asking about any incentives that may be available.

His other piece of advice... Don’t be afraid to negotiate. He says many sellers are much more willing to work with buyers than they were a few years ago.

Advice for sellers

If you’re thinking about selling, Linn says pricing your home correctly is one of the most important things you can do.

Homes that are priced right and show well are still getting a lot of attention. But if a home is priced too high, it could end up sitting on the market much longer.

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