tomorrow the FED is considering whether to raise interest rates for the ninth time in the last year they were expected to make the increase but may hold after the recent uncertainty in the banking industry last week but here in New Jersey the rise in interest rates have contributed to a Slowdown in first-time home buyership that coupled with the increase in property values in the state have contributed to folks delaying their home purchases for a few years senior correspondent Brenda Flanagan takes a look at the numbers and what it means for those starting out in life every spring for sale signs usually pop up like daffodils beckoning potential first-time buyers reaching for the American dream A Home of Their Own but Redfin reports the median sale price of a New Jersey home top 421 thousand dollars in January and with mortgage interest rates pushing seven percent what can a first-time buyer expect the dream of home ownership is out there they will get the opportunity they just are going to have to be a little bit more patient 2023 is going to be a difficult year in real estate right because we're not going to see any increase in inventory realtor Robert White predicts a flat Market despite a boost in springtime listings and he's seen a change in first-time home buyers there's some that are saying okay you know what let's put the brakes on let's wait we're in no rush and we noticed that because the average age of a first-time homebuyer increased from 33 to 36. last year only 26 percent of U.S home sales went to First time buyers with median prices ranging from 575 000 in Morris County to 540 000 in Bergen to 510 000 in Essex County according to realtor.com buying even a starter home requires serious Financial preparations being qualified having enough money down having the mortgage qualifications in hand ready to go at a moment's notice realtor Brett anastas says bidding wars continue in some of New Jersey's hottest housing spots he's got some first-time buyers who have been looking around North Jersey for 18 months that have seen 30 maybe 40 homes made offers and been rejected due to a higher bid due to a cash offer and it's a tough a tough thing for them they need to be more aggressive in terms of the prices that they're willing to offer in order to win the deal real estate expert Jeffrey Otto suspects that with markets roiling Banks could become even stricter when qualifying folks for mortgages so how much should you expect to Pony up to clinch the sale on up four hundred thousand dollar home 10 percent down payment would be forty thousand another ten thousand plus for closing costs you should be carrying about fifty thousand dollars in uh in your own liquid assets uh to be able to put into this purchase 20 down makes it more affordable but first-time buyers rarely have that auto expects prices to start drifting downward as interest rates remain high that's some good news and New Jersey does offer grants for eligible first-time home buyers some go to the tried and true Bank of mom and dad they've been borrowing from parents you know parents have been kind enough to you know loan them the money by depleting um their equities and you know then paying them back but not everyone can count on banking with their parents so for many first-time buyers that means waiting for the market to settle down so that they can settle down too in West New York I'm Brenda Flanagan NJ Spotlight news support for the business report provided by New Jersey American Water we keep life flowing online at new jerseyamwater.com [Music] [Music]