CINCINNATI — It’s happened four times over three months. Amelie Passe-Carlus and her husband have fallen in love with a house, secured a loan, offered thousands over asking price and started to imagine a future, only to learn they were outbid and outmatched.
The couple is one of many across the country struggling to find their first home, and as prices and interest rates continue to rise, they said it’s only getting more and more difficult.
Part of the issue is a simple matter of supply and demand. Freddie Mac estimates the country has a housing deficit of 3.8 million units, and with supply chain issues delaying construction, there’s been little to slow down the demand.
That’s meant the price of those homes has been rising quickly. CoreLogic’s Home Price Index reports the price of an average home is 20% higher than it was this time last year, and while economists predict that inflation will slow down by next year, they don’t expect a drop anytime soon.
Now with mortgage rates on the rise too, it's pushing even more homes out of the starter-market price range.
For Passe-Carlus, it felt like a matter of bad timing. She and her husband moved across the country for what they hope will be a long-term job opportunity, and with a young daughter, it made sense to start looking for that first home.
“I feel like the best time to buy a house is when you need a house,” she said. “I feel like right now is a good time to buy a house for us for our plans and what we need right now.”
They moved to the area in March, staying with a friend temporarily until they were able to find a place. Four months later, they’re still sharing that house, grateful for the family’s generosity and patience.
“I don’t even know how many homes we have seen,” she said. “We knew that the housing market was a little crazy; we didn’t know how difficult it would be.”
Passe-Carlus doesn’t believe she and her husband are being picky, either.
They started looking for a three-bedroom house for less than $320,000, not factoring in the extra few thousand they’d have to offer over asking, that’s within 30 minutes of her husband’s job. As the search drags on, they’ve expanded both the budget and distance.
“We’re getting a little desperate,” she said.
Following their realtor’s advice as well as their lender’s, Passe-Carlus said they’ve always offered above asking price and tried putting in appraisal gaps, escalation clauses and even waived inspections to make their offers more competitive.
“We have borrowed money from family to put more as a down payment because sellers have asked about that, too,” she said.
Every time though, someone else was able to bid more or offer cash, and after months of trying, Passe-Carlus said it feels impossible to compete in such an emotionally exhausting process.
“You know it’s the American dream having your kids and your house and your white picket fence right?” she said. “You start to make plans and then it falls through and all those plans just kind of like you have to throw them in the trash.”
Passe-Carlus and her family consider themselves lucky. They’re not on a lease, and while they’re paying rent to their friends and helping them with utilities, they’ve kept themselves ready to move out at any time if they get the opportunity.
“It will just be nice to have our own space,” she said.
She said if she can’t find a place by the end of the year, she’ll look for rentals, though she understands that market isn’t much easier.
Passe-Carlus said she doesn’t want to give up on her dream of owning a house, but if the timing doesn’t work out, she doesn’t want to settle either, even if that means waiting for the right home at the right price.
“It’s not like a pair of pants,” she said. “This is one of the most important purchases in your life.”