Rocky road to home ownership will continue in 2025

(InvestigateTV) — The latest report from the Department of Housing and Urban Development (HUD) shows U.S. homeownership rates have remained flat in 2024, due to issues such as limited inventory and mortgage interest rates.

Matt Vernon, the head of consumer lending at Bank of America, said those are thinking about buying a home should start planning now.

“Buying a home is not something you wake up in the morning and say, “Today I’m buying a home,” Vernon noted. “It’s a journey and it takes time and patience and preparation and advice from experts. So, I often advice folks to one, figure out exactly what you really want to achieve from a budgetary perspective.”

Vernon gave potential buyers a checklist to start planning their purchase:

Map out what they can comfortably afford as a mortgage payment each month.
Factor in additional costs such as insurance, taxes.
Target additional expenses that may come up such as replacing a roof or HVAC unit.
Narrow down the search area to desirable neighborhoods and research the average housing prices.
Make a list of desired features of a new home.

“And then last but not least, consulting an expert,” he advised. “Whether that’s a real estate professional or someone in the lending community like the folks at Bank of America that can help advice clients on how to achieve that home ownership journey.”

Vernon said the markets are different across the country. Some have more housing inventory than others. In some areas require buyers to act quickly.

He said being aware of the local market is key to finding the right home for the right price.