Experts from Redfin real estate brokerage explain the challenges buyers are experiencing as they try to buy their first homes.

<div class="block">The dream of owning your own home is slipping further out of the reach of first-time buyers thanks to sky-high prices and mortgage rates that have more than doubled over the last few years. Amira Elgoneimy, a premiere agent with Redfin real estate brokerage, and Daryl Fairweather, chief economist with the real estate brokerage, explain the challenges buyers are experiencing as they try to buy their first homes.</div>

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Buying a Starter Home in a Sellers' Market

Buying your own home is challenging. On top of saving for that down payment, there's also escalating prices and interest rates. It's a lot for new home buyers to consider. So I took a look at what you'll get if you're searching for a starter home near a big city. Take a look with sky high interest rates, not to mention low inventory. It's harder than ever to achieve the American dream of owning your own home. So what does it take to buy real estate in such a challenging market? I traveled to New Jersey to find out the median home price in the United States is $406,700. But due to its proximity to New York City, the price here in New Jersey is slightly higher at 485,000. This home behind me, however, which is considered a starter home for most is listed only at 444,000. Hi. Hi, welcome to 1 33. Kingsbury's Amira Elmi showed me around this two bedroom, 2.5 bath townhouse in Franklin Township, New Jersey. It's about one hour from New York. We're right within three miles between Jersey's Ave train station, which is the northeast corridor of New New Jersey transit that goes right into Penn Station. There's also a bus stop right outside the community. So it's a short half a mile walk to the front of the community where you can hop on a bus to go there, a loft and a finished basement. Give you more options as well if someone was obviously working from home from here. is that something that typically people ask for now? Yeah, definitely. If we can't get larger homes, what they're looking for smaller homes with flex spaces. So this loft is perfect for that. Also, if a family did have young Children, this tends to be a play area as well. While you do have a homeowners Association fee that covers some maintenance and snow removal. You do get a small outdoor space to yourself. Imagine enjoying a cup of coffee or reading a book right out here on this patio and you also have a great space for grilling and hosting guests. Crime is relatively low in the area and there's plenty of options for schools. Franklin Township itself is a very unique town because it not only has public schools, private schools, public charter schools and charter schools all within the zip code. While the space might seem small properties like this are in demand for first time home buyers, young families and older adults looking to downsize within the first five days. 133. Kingsbury received seven offers to secure their dream. Property buyers have to be very aggressive. According to Redfin, chief economist Darryl Fairweather, those kinds of desirable homes is definitely still a seller's market, which means that there are more buyers out there than there are sellers willing to sell those kinds of homes. High mortgage rates are making current homeowners rethink plans to move and there's not a lot of new builds out there. Nar estimates we're short 5.5 million homes. Currently, first time home buyers, it's rough out there for them. There aren't that many starter homes on the market. Those are getting swept up by people who are willing to pay all cash. So what's a family to do that needs to live near a city to survive but also needs a roof over their head. We really just need to build more and we need to build more in places that have access to jobs and economic opportunities for people. Until then the gap between those who own and those who aspire to own will continue to widen.