BOZEMAN — Being a first-time homebuyer in Montana is more challenging than scrolling the internet and clicking "add to cart." There are a lot more factors that factor into the equation.
With the median single-family home currently priced at $797,500 in the Gallatin Valley, broker and realtor Trecie Wheat Hughes explains why first-time homebuyers struggle to get the keys to their first home.
"The biggest problem is that first-time homebuyers don't understand what's happening. All they hear is how expensive everything is and how high interest rates are," Wheat Hughes says.
Thursday afternoon, Senator Jon Tester appeared in Bozeman to discuss his proposed bill to lower housing costs.
"Home ownership is a critical piece of the puzzle for folks looking to put down roots in our great state, and we need to make sure it is within reach, buying a home of hard-working Montanans, not just the wealthy," Senator Tester says.
The proposed bill is called the First Time Homebuyer Tax Credit Act.
"It will provide a tax credit of 10% of the purchase price up to $15,000. It also directs the Department of Housing and Urban Development to develop rules to use this tax credit as a down payment, and that's an important part of this," Senator Tester says.
Tester's proposal raised questions for Wheat Hughes.
"I think we need to know when that money is available and also if their Lendor is going to include that in qualifying them," Wheat Hughes says.
Wheat Hughes wants first-time homebuyers to be open to purchasing.
"Find a great lender, and you need to find a great realtor. Meet with them, meet with them together, and get a game plan," Wheat Hughes says.
I spoke with lender Renee Gaugler at Cornerstone Home Lending. She has been a lender in the Gallatin Valley for over 20 years.
"There is more out there than I think people think, and if they haven't looked in a while, I think it's time," Gaugler says.
As for the tax credit act, Gaugler thinks prices will rise.
"Realistically, the only way to decrease prices is to add more inventory to the market. If you suddenly encourage more people to buy, that's the opposite. If you have more buyers competing for the same number of houses, you're going to drive prices up," Gaugler says.
Tester acknowledges the potential for price increases.
"Well, I mean, look, some would say when you put tax credits out, it just jacks up the price of everything. Prices are pretty high right now, as you well know. I think it does need to be paired with projects that will put more houses on the market like the tax credits I talked about," Tester says.
Wheat Hughes has this advice for those in the market for a home now: "You need a plan, and we need to educate these first-time homebuyers."
