I-Team: Timing the housing market could cost you in the longrun when looking for that first home

COACHELLA VALLEY, Calif. (KESQ) - Just like everything, real estate in the Coachella Valley all seems to be going up in price, but if you are waiting to buy, the wait might cost you.

In our latest I-Team Investigation, Jeff Stahl reveals some sobering numbers for first-time homebuyers, asks some tough questions, and reveals the strategies you need to know now if you want to buy your own home.

Managing a squirmy toddler, the family dog, and her newborn baby at the park, Jeahna Torres says she and her husband are interested in buying a home someday, but the down payment costs are a challenge.

"The initial costs are a lot," Jeahna Torres said adding, "With the prices of rent, it's hard to get out of that, too, right now. Even to save up the money is hard for a young family like us."

Jeff Stahl asked a local realtor, Stephen Powell, what his best advice is for someone who wants to get into the market but isn't sure they can afford it?  Powell said the first thing the buyer needs to do is speak to a lender, and time is of the essence. 

"People who waited a year ago to enter the market, have paid a price because it wasn't the favorable conditions they were waiting for," Powell said. Three percent interest rates are long gone and housing prices also continue to rise, he added.

Powell’s advice is echoed by the California Desert Association of REALTORS and a new Realtor Economic Forecast for the Coachella Valley.

Jeff Stahl dug into those numbers and what he found was, the longer you wait, the more it will cost. 

"What steps would you tell them to have the best chance to be able to end up in a home?" Jeff Stahl asked Stephenie Zinn, CDAR's President. Zinn said, "As someone looking to get in the market, we heard that the best time was 10 years ago, the next best time is now."

The statistics don't lie. Gone are homes in the $200,000 to $300,000 price range from 2014. Now, median prices are near $700,000 in the Coachella Valley, a 133 percent increase since 2014.

In another five years, realtors say they expect minimum prices to top a million dollars.

But there is some good news.

Helping buyers right now, this chart shows housing inventories are up from a low in early 2022. 

They're not at the industry ideal mix of a 6 month supply,where neither buyer nor seller has an advantage over the other, but very close. The current housing inventory is at 5.6 months.

Where to buy? Palm Springs and Palm Desert have the most homes for sale. Coachella and Bermuda Dunes have the least.

Zinn said, "It's allowed those first-time buyers to pick up properties again."

"If it's overpriced, it's sitting," Powell said, adding, "If it's priced right, it's still moving."

And back to getting financed. There is help, even with a down payment.

Zinn said, "A lot of the times when a buyer comes to me wanting to get into home ownership, the first conversation we have is with one of our lender partners to see how they can get qualified."

It may take some additional work, but Zinn says good realtors will help their clients make transactions happen. 

For Torres, a military husband means they can use a no-money-down payment VA loan when they're ready to buy.

Torres said, "We'll definitely look into a VA loan. We would love to buy a home eventually."

For others, there are other lesser-known options motivated lenders can seek out besides the common VA and FHA programs.

Zinn said, "The lenders know about those programs and they have them in their back pockets for those home buyers."

Powell says the key is-- if you need to do it, do it. "Don't hesitate, and don't let fear stop you," Powell said.

And lenders can't be understated. Both Zinn and Powell say good lenders will go to bat for you, helping you know what you can afford, so you know where to start looking for that future opportunity.