From Western New York to Syracuse, the average house is selling for about $220,000 to $250,000, according to economists. Those prices are up 5% to 10% from previous years.

Fred Floss, economics professor at SUNY Buffalo State, said the increase in home prices means buyers should be realistic about their goals.

“One of the things I always recommend is don't go out and look at $500,000 and $600,000 houses when you can only afford a $200,000 house, because you're going to want everything that's in the $500,000 house, but you can't afford it,” said Floss.

Floss said it’s best to make sure your monthly mortgage payment doesn’t exceed 20% of your household income. This can help keep you from being in serious financial trouble if a recession were to hit and/or your employment situation were to change.

Howard Hanna Real Estate Broker Emily Cornwell said buyers should be prepared for competition with more people looking for houses than there are homes on the market.

“If you're pre-approved up to $300,000 looking in the $250,000 range or, you know, similar, [look] within a price point where you have room to be competitive when warranted and necessary,” she said.

Floss also recommends paying the 20% down payment rather than taking on private mortgage insurance, or PMI. That's an added monthly insurance cost that can be avoided by making the right investments upfront.