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"It's pretty frustrating to have my mom sleeping in someone's living room" | Mid-South woman desperately hunts for new home

Some house hunters are on the brink of homelessness because they can't find an affordable home to buy.

MEMPHIS, Tenn. — You've probably heard about how crazy the Memphis real estate market is at the moment.  

A recent analysis from the Shelby County Property Assessor's office found more than 7,000 single family homes have been purchased by investors in the past two years and converted to rental property.

With prices up, inventory down, and competition fierce, some house hunters are on verge of being homeless while trying to find a new place to call their own. 

The housing market is so tight, one Memphis woman and her mother have been looking a new home for eight months. 

"My sister, she opened up her home to us because we had no where to go," said Raya Banks.

Banks and her mother have been staying at her sister's home while they house hunt. Her mother is sleeping in a hospital bed in the living room.

"It's pretty frustrating to have my mom sleeping in someone living room, ya know, and I'm upstairs," said Banks.

After Banks' landlord sold the home they were living in, Banks got preapproved to buy a home up $160,000. But she has yet to find a house.

"It frustrates me because there are a lot of out-of-town investors coming in and they are paying way more," said Banks, "10, 20, 30-thousand more than what the listing price is, and that's knocking everyone else out of the park."

Banks said she has lost several bids or the homes are sold before she can make an offer - or sometimes she can't even buy them.

"When I read, it says cash offer only, or investors only, or great for investors," said Banks.

"This is the worst I've seen it in 50 years. The worst I have seen it," said loan officer Omar Baruti.

Baruti said low and moderate income homebuyers are the most impacted by this tight market because the homebuyers can't compete with the investors.

RELATED: Just who are these investment firms buying thousands of Memphis-area homes?

RELATED: 'The Hunger Games of housing' | 7,000 Shelby County owner-occupied homes turned into rentals in 2 years

"When you have just the minimum funds to get that property, you don't have the extra money to pay the extra 5 or 10-thousand dollars," said Baruti. 

For now, all Banks wants for Christmas is a new home, and so does her mother. Josephine Jones said she is sick of living in the living room.

"I want my own house because I hate to be crowding out my baby girl. I want my own," said Jones.