House-hunters frustrated by higher prices and fewer homes

Shortly after moving to South Florida for a new job with the U.S. Army, Shannon Kaufman and his wife, Wendy, set out on another mission: to buy a home.

After visiting 200 listings and bidding on 15 homes that eventually didn’t come out, the Kaufmans finally found a home that suited at least some of their needs. They will rent it, though.

“We’ve found a smaller place than we want, but it will work until we have something built in or until the market cools down,” said Shannon Kaufman, 47.

The US housing market has grown increasingly frantic and prices are out of reach for many buyers, especially first-timers. This spring, traditionally the busiest season for home sales, is more likely to cause frustration and disappointment for aspiring homebuyers. This is due to the fact that the number of homes for sale nationwide remains close to historic lows, fueling fierce competition among buyers struggling for fewer homes.

Homebuyers have been hit hard this year with a “double whammy” in rising house prices and mortgage rates, Jeff Tucker, senior economist at Zillow, he recently told CBS MoneyWatch.

“What it means is that any particular home you buy will be more expensive to pay monthly,” Tucker said. “For some people this means looking at a smaller house in a different neighborhood or a townhouse instead of a single family home.

Matthew Pointon, senior real estate economist at Capital Economics, also notes that people who have been previously approved for a mortgage are under pressure to get a home deal, especially those who would have loans in January or February.

“Since most pre-approvals expire in 60-90 days, this group has an even more urgent need to buy,” it said in a report.

These trends have made the market more competitive for early shoppers like Lisa Piercey and her husband, Alex Berardo. The couple began looking for homes in December for $ 350,000 or less. They offered $ 5,000 above the asking price on two properties, but lost to rival bidders.

“That was all we could afford,” said Lisa Piercey, a 32-year-old project manager. “He’s really defeated, very disappointing.”

In the end, the couple bought a townhouse in a newly built community, although they see it as a step toward a larger home with a large patio.

“It’s big enough that we can still start our family and then move on when the market escapes in a couple of years,” he said.