Mom Pays $3,850 for a Tiny Home, Can’t Afford a Nursery: Is it a Bad Time to Buy?

Housing prices terrify prospective homebuyers even when Halloween is gone. @sarahjilllutz discussed her battle to locate an inexpensive tri-state home for herself, her husband, and their newborn daughter on TikTok.

sarahjilllutz/TikTok (photo: google)

Struggles to Afford a Home: Rising Prices and Limited Space

Sarah, a Long Island parent, and her husband struggle to finance a tri-state house despite their nursing and occupational therapy wages. Housing costs are rising, leaving them without room for a nursery or their daughter’s things.

Sarah sees properties selling over asking prices, mirroring 84% of buyers who think it’s a poor time to purchase, according to an October 2023 Fannie Mae Home Purchase Sentiment Index. Limited availability and poor housing affordability drove September home sales down 15% from the previous year.

Buyers might negotiate more with sellers due to higher interest rates. Before entering the competitive home market, buyers should obtain pre-approval for a mortgage.

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Saving for Your Dream Home

Sarah and her husband are draining their funds by spending $3,850 on a one-bedroom Long Island condo. Sarah stresses having a savings goal for their dream home, mirroring personal finance guru Ramit Sethi’s advice to strive for a 20% down payment before purchasing a property.

You can get a house loan with a lesser down payment, but putting down 20% makes you more acceptable to lenders, expediting the process and saving you money. Rising costs make saving difficult, but a savings calculator may help you save for a house.

READ ALSO: ‘You’re broke people with lots of degrees’: This North Carolina couple has a whopping $400K in student debt — so Dave Ramsey told them to eat a steady diet of beans, rice and ramen noodles