Newlywed House Hunting: Where to Start?

Update: Pulled this from my backlog of hoarded articles that never made it online. Follow along to read about the decision making progress and updates from our first 10 months of homeownership.

Like many modern couples, and much to the chagrin of my traditional family – especially my grandparents- my now-husband and I moved in together after just over a year of dating and well-before we were engaged. 

While there are many potential downfalls and some see it as a backwards timeline, it worked well for us because we already knew it was a life-long commitment we shared, and moving in was more than saving some rent money (though I’d be lying if we didn’t recognize how much of a game-changer that was, especially in metro-Atlanta!)

Now that we’ve made it down the altar, returned from our Hawaiian Honeymoon, and settled back into the swing of things, it’s natural that we start wanting to look into home buying. After all, we’ve lived together for over two years in an apartment – a great one, with all the perks – but an apartment no less. 

Our loving and considerate friends have stockpiled wedding registry gifts that we have had to invest in a storage unit to short-term stash, and we have no dining room to speak of that allows us to put our new hosting swag to good use. 

It’s time for a real second bedroom for guests, a place for meals other than a couch and coffee table, and a spacious (or any size, really) yard to finally become puppy parents! 

There’s just one catch- we’re first time home buying millennials (don’t tell him I called him that!) And I’m sure you know what they say about that right now – it’s at peak difficulty to find the right house at the right price, especially without a prior house sale to roll into equity at the current price points. 

Despite good jobs and waiting a little longer in life for timing to be right, it’s an ugly market out there. That, compiled with the metro-Atlanta area we live in and the strong desire not to have a daily commute over an hour each way, is creating a dire outlook on the whole process. 

We have used tools like Redfin, Trulia and Zillow (yes, I juggle between all three) over the past two years to get a sense of the market, and what we can get for our money. In just those two years, we’ve watched 3-bedroom, 1-bath ranch houses, untouched since the 1970’s, increase in price from $350,000 to newly-flipped, same-size houses for $550,000 solely due to location. 

That’s the market we’re dealing with. And even the suburban sprawl has caused the surrounding areas to hike in price in a very short period. 

Many financial analysts suggest we are at the top of the market, but also recognize there won’t be a total bubble burst like in the past. But does that mean the market will at least correct a little in 2019 or 2020? It’s been a seller’s market for so long! 

At the same time, metro areas are only so large, with enough space only for so many single family houses. And those going up are far from modest – the payout on new builds is much greater for a “McMansion” than for a starter home. 

So now what? Do we mentally prepare for hour-long commutes, risk investing in a hopefully on-the-rise part of town, or financially prepare for the hefty chunk of change leaving our wallets… for the next 30 years. 

I’d love to hear from others in the same boat in the comments below. What part of the country are you in, and what are your considerations for buying?