The Struggles Of A First Time Buyer
Did you know that in the past year – FIRST time home buyers made up 31% of ALL home buyers????
The same as the year prior!
82% of these first time home buyers – are 22 to 30 years. 48% of buyers are 31 to 40 years. Behind these groups, 22% of buyers 40 to 54 years are also getting into the market for the FIRST time.
First-time buyers always face an uphill battle. They typically cannot spend as much as other buyers, and their credit histories aren’t as strong.
And like so many other problems, Covid-19 further complicated the process. With no one leaving their homes, supply became even scarcer than it was. That coincided with more millenials reaching the point where buying a home was financially feasible — and “necessary” for many with growing families — or needing more space while working from home.
I personally worked with many first time home buyers during the first half of 2021. Some were successful securing a home…but often had to make concessions for “what” they wanted:
- Starting in a condo – rather than a detached or attached home
- Buying without garage or developed basement
- Buying in areas (or even cities) that are farther out – due to affordability
- Sacrificing things they really wanted – Ensuite, South Backyard, Fireplace, 3 Bedrooms etc
Some were so put off by the following:
- Lack of inventory
- Losing home after home
- Competing in multiple offers – only to outbid over and over again
- Listings selling on the first day – at list price or above – before we could even view them!
In a lot of cases, they end up tabling their search till the market cools down!
I have also found this year – that many sellers “know” they will sell their house – so they do nothing to make it look appealing or updated. They are not showing their best!!!! For first time home buyers….this experience can also be disappointing.
First time home buyers…be patient…..the future looks better!
We hope more inventory will come on board. There is an election where all parties have some type of housing plan. The bank said it will keep the rate at near-zero until the economy is ready to handle an increase in rates, which it doesn’t expect to happen until the second half of 2022.
To be best prepared … WHEN your dream home comes on market …here are some suggestions:
- Get pre-approved by your bank/broker (we can help here too!)
- KNOW your budget – for the home and for your LIFE
- Pay your bills on time – so your credit is exceptional.
- Do not buy a new Car/Bike/Furniture on any “buy now, pay later” plans!