The housing market is hot right now — if you’re a seller.

The flipside is that buyers have a difficult time finding homes.

Americans know the difficulties they have in purchasing a house. Momentive’s survey found that more than 70% Americans believe the current housing market bubble is real. And more than 50% think it’s an unfavorable time to invest in homes.

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Prices are a major factor that’s keeping potential buyers on the sidelines — some 38% said they have delayed or canceled plans to buy a home due to inflation. The survey also found that people of color are more likely to delay buying a house due to rising prices.

Jon Cohen, Momentive’s chief research officer said that more scuttled and delayed plans for buying among these groups could aggravate already large gaps in homeownership rates across racial or ethnic lines.

The following is the April edition median sales priceAccording to the National Association of Realtors, the average price of a home in the United States was $391,000. This is almost 15% more than a year ago.

According to Danielle Hale (chief economist at Realtor.com), mortgage rates have been rising, so buyers who are able to borrow money will be paying more.

According to Hale, this can affect younger buyers as well as first-time purchasers. This means homeownership is no longer an option for those who want to build wealth.

“It’s a very competitive market for those who are shopping at the top of their budgets,” said Peter Murray, a realtor and the principal broker at Murray & Co. Real Estate in Frederick, Maryland. There are many disappointments.”

Everyone is getting squeezed

Brian Copeland of Nashville, Tennessee, said that before the housing bubble burst, there was an easy profile that could have been considered an “A buyer”.

Copeland also serves as president of Greater Nashville Realtors. He said that “four years ago, an “A” buyer was someone who could get a loan and had 3% down. An ‘A buyer’ has access to all of the cash today.

He also said that the most discerning buyers will waive inspections and appraisals. In some instances, they may not even be able to view the home in person.

Copeland said that everyone is suffering, and added that the middle class is experiencing affordable housing.

Money math

If they have spent months searching for a home, some homeowners might be tempted by the prospect of spending more to buy it.

Marguerita Ching, CEO at Blue Ocean Global Wealth Gaithersburg in Maryland, believes that it can be a good idea to increase your budget in certain cases.

She stated that there are times she has told people to be flexible, but to also understand the effects on your daily life.

It might make financial sense to spend a little more on moving if other expenses are lower or you anticipate lifestyle changes that will increase your monthly budget. You could go from having two cars to one or have children going into public school soon, which means you don’t pay as much childcare.

You may be able afford to buy more if your salary base is used, without including bonuses. You may have more flexibility if your consumer debt is low, you are saving enough for retirement, and have an emergency fund.

You also need to think about how long you intend on staying in the house. You may want to invest a bit more if you are planning to keep the home for five years or more.

Do not stretch!

There are also situations in which it is not a good idea to raise your homebuying cost.

Cheng suggests sticking with the original plan, even if it makes saving money or debt repayments more difficult.

She said, “If they have to borrow money from retirement in order for this stretch to occur, then I wouldn’t think that makes sense.”

Also, she cautioned that you should not spend all of your savings on a home purchase to pay more. Budget for variables such as repairs, taxes and insurance.

Cheng also said it doesn’t make financial sense to reduce your income to the extent that you can afford tax breaks. You’ll have trouble if these benefits disappear in the future.

How to make more if your budget is tight

There are a variety of options available to buyers who don’t have the budget.

Murray said, “They can either put an end to their home search” or need to adjust their search criteria.

For those who have more time to save, it might be a good idea to exit the purchasing market. It could also be a bad idea, however — if prices continue to rise, you could be further priced out of the market, said Copeland.

Rethinking your list of must-haves may make sense. You should also consider other areas, even those that might not be as well-known or further from the city center. You may need to have flexibility in the dimensions and condition of your home.

Hale said that they should have all their documentation ready so they are able to make an offer on a property they love immediately.