BRISTOL, Va. — Like a lot of millennials, Sara Musick walked into a terrible economy when she graduated from Virginia Tech in 2009.

The Bristol native worked various odd jobs after college, but eventually returned to Virginia Tech to earn a master’s degree in human development and family studies.

Today, after nearly 10 years away from home, Musick has returned to the Mountain Empire. She landed a job at Girls Inc. and is living at home while she saves money.

“It was time,” Musick said. “It was about six months of thinking before I came back.”

Like many in her age group and beyond, Musick wants to buy a little piece of the American dream. Since last fall, she has been looking for a house. She found one, made an offer, but the deal eventually fell through.

Like many areas of the country, the housing market in the Mountain Empire appears to be slowly returning to normal. Although at some points in recent years, buying a home seemed to be a dream out of reach for many, due to the downturn in the economy and the housing industry along with tougher standards for borrowing, that no longer seems to be the case.

A key part of the current housing sector is the first-time buyer and local real estate professionals say they are seeing more and more people like Musick who are considering their first home purchase.

“There is a big market for first-time homebuyers right now,” said Lori Cross Hobson, Musick’s real estate agent.

Finding the right home

Musick works in the non-profit sector, so her income is limited. She also has student loans and a car payment. So, she’s searching for a house that is less than $100,000 and not considered a fixer-upper.

That is partially why she is being cautious. She does not want to purchase an entry-level home and have problems with the roof, heating unit or hot water heater.

“I don’t have a lot of money to do major repairs,” Musick said.

Cross Hobson, with Heritage Homes in Bristol, has talked with Musick about buying a townhouse, but Musick is adamant that she wants a house.

“I have done apartments and condos all my life,” Musick said. “I want to buy something free-standing.”

Cross Hobson and Musick believe she will eventually find a home. It will just take some time and work.

“We have found a few homes, but they have been on the Tennessee side,” Cross Hobson said. “She really wants to stay on the Virginia side.”

Musick’s dad has worked in construction and has helped her look at nine or 10 properties. He crawls under the dwelling to let her know if the house is even worth considering.

“I need to know the house isn’t going to fall down next month,” Musick said.

She knows she won’t find the perfect house in her price range, but she is confident that the right one exists in the region.

Gap in the market

Bristol, Tenn., real estate agent Marie Hodge, of Realty Executives, said there is a gap in the housing market for entry level homes. Before the housing bubble burst in 2007, there were a large number of new homes under construction. But these days, not many homes are being built and very few small, older homes are coming onto the market.

“There are a minimal amount of homes for first-time homebuyers,” she said.

Musick has looked at properties that are for sale by owner and ones listed by real estate companies.

“I feel like I have been looking [online] at the same properties for months,” Musick said.

Wise real estate agent Linda Ratliff said there is a strong market for houses priced between $75,000 and $150,000, but she has a hard time moving homes listed over $200,000.

She said there are simply not enough homes in the price range for first-time homebuyers.

“We don’t have enough on the market,” Ratliff said.

Cross Hobson, said she expects Musick will find something soon, now that winter has ended and more houses will be listed. She added that it makes sense for Musick to purchase a home because the cost of a mortgage will be less than rent.

Musick said she wants to pay around $400 a month for a mortgage and she figures she would pay between $600 and $800 a month in rent.

Local trend opposite national numbers

Last year, 38 percent of homebuyers were buying a home for the first time, according to the National Association of Realtors. That is down from 39 percent in 2012 and down from two decades ago, when the number was above 40 percent.

The average age of a first-time homebuyer is 31, an increase over the past couple of years. A lot of people are waiting longer to purchase a first home, partially because of unease about the economy and the increasing amount of student debt, real estate experts say.

Locally, it appears that many millennials are considering buying homes. Hodges said more first-time homebuyers have started to contact her recently. She is working with several people in their 20s who are looking to purchase an entry-level home like Musick.

“I think interest rates and the confidence in the economy has sent them out,” Hodges said.

Eastman Credit Union Manager of Mortgage Lending Dolly Linkous said her financial institution has also experienced an increase in the number of buyers looking to purchase their first homes.

“We are definitely seeing an uptick in the first-time homebuyers,” she said.

The trend started a couple of years ago and has grown steadily.

Linkous said that while many first-time buyers are young like Musick, the profile of buyers is not easily put in a box.

“It’s a wide range,” Linkous said. “Instinctively, you would think it is a younger buyer, but it might be somebody who has gone through a life event.”

People are considered first-time buyers if they have been through a divorce or have not owned a home in more than three years.

Linkous said many of the first-time homebuyers are on the lower end of the market, but that is not always the case.

The market seems to be more challenging for the rural areas of Southwest Virginia. Real estate agent Karen Franks, of Wise, said she only does about a quarter of her sales for first-time homebuyers. She said tighter credit limits have reduced the numbers.

“A lot of my sales are people relocating to the area,” said Franks, of Century 21.

Grundy, Va., real estate agent Diann Blankenship, of Century 21, expressed similar thoughts. She believes the tight economy and downturn in the coal industry have limited the real estate activity.

“I don’t see a great deal going on,” Blankenship said.

Programs available

Eastman Credit Union and other financial institutions offer programs that are specifically designed for first-time homebuyers. Linkous said the down payment and closing costs can be a challenge for many, but programs are available to help.

“I think the down payment can be overwhelming,” she said.

In the past, borrowers were required to have 20 percent down, or pay property insurance. Now, many banks offer zero-down loans or loans that require as little as 5 percent.

“It’s an excellent way to get into a first home,” Linkous said.

While some lender standards tightened after the housing crash, buyers with solid credit can still get financing.

“There are hurdles to go through, but the banks have adjusted and changed,” Cross Hobson said.

To start the process, Cross Hobson sits down with first-time purchasers to educate them about the process and help them understand the potential pitfalls. Besides programs through the banks, other programs are available. For example, First Tennessee Development District offers $5,000 grants for first-time homebuyers and Cross Hobson said she has encouraged Musick and other clients to take advantage.

“There are a lot of good programs for first-time homebuyers, especially at the lower-income levels,” Cross Hobson said.

Musick said she has applied for the grant money and has been pre-approved for a loan. She is just waiting to find the right house so she can take advantage of the programs.

“I’m getting a little exhausted at this point,” Musick said.