The North Fork’s real estate market is hot for first-time homebuyers according to local real estate agents, who say the first-time homebuyer market is very active this spring.
“This is a market that is really starting to pick up,” said Kristen Rishe of North Fork Real Estate. “The mortgage industry has relaxed a bit and first-time homebuyers are ready to start looking again.
Rishe said the trend is the same across the entire North Fork, from Riverhead right to Orient, and first-time home-buyers are looking for deals on two to three bedroom homes with low taxes.
She does see a problem, however: inventory is low.
“It’s not empty, but it’s low and affordable homes need work, which creates a struggle — these buyers only have a certain amount of money to buy, not enough to fix their home up on top of it,” she said.
Currently, Rishe’s office is marketing two homes to first time homebuyers. One is at 315 Sutten Place in Greenport, which features three bedrooms and two baths for $399,000. The other is a three bedroom, two bath starter home for $355,000 at 60 Gagens Landing Road in Southold.
Valerie Goode, of Colony Realty agreed that the market is ripe for first-time homebuyers.
“That market is very strong,” said Goode, but she says the hitch is that investors, paying cash, are scooping them up before the first-time homebuyers can even make a first offer.
“I’ve gotten knocked out of a few deals by investors,” said Goode, who said first-time homebuyers are on average looking for homes in the $150,000 to $350,000 range.
Goode’s agency has available several homes in those price points, including a short-sale on Elton Avenue Extension in Riverhead for $159,000 and a cape for $219,000 at 3097 Sound Avenue, in Riverhead
To ensure that their clients are able to buy the home of their dreams without getting knocked out of the bidding, both Goode and Rishe strongly recommended that clients get pre-qualified for a mortgage before even starting to look around the market.
“You want to be able to hit the ground running when you find something you like,” said Goode. “You don’t want to willy-nilly look at houses. You want to know what your buying power is.”
Goode also recommends that first-time homebuyers look into a new program under the Long Island Housing Partnership that provides down payment assistance to young couples.
With a pre-qualifying documents in hand, Goode suggests that young couples hook up with a real estate agent that they know will not only work for them and create a wish list of features they want in a first home, but be willing to break from that list.
Rishe agreed: “If you get 16 out of 20 things on your wish list, you are doing good,” she said.
But, if, as a first-time homebuyer, you aren’t finding exactly what you want, Goode, said that you shouldn’t be dismayed.
“Be diligent and you will find a home,” she said. “The benefits of owning a home are amazing; you can knock out a wall out and plant tulips. It is an investment,” said Goode.