First Time Home Buyer Trends in 2021
The housing market has been experiencing big changes over the past year, and this isn’t expected to change as we jump head first into 2021! This week, we’re diving into some of the trend information for those of our clients buying a first home. One of the best ways to stay ahead of the game in real estate is to know your market inside and out. This will help you be your client’s #1 resource and make the home buying process that much smoother. Without further ado, let’s jump right into it.
First Time Home Buyer Trends in 2021
You can find countless articles about how the different generations differ from one another in terms of eating preferences, habits, income potential, and more. But, what about real estate? The younger generations, Millennials and Gen Z, are starting to emerge as a sizable piece of the market for 2021. Millennials in particular are the largest share of buyers at 37%, according to a newly released NAR report.
Luckily for REALTORS®, the younger generations are known for using all the resources and tools available to them, from their mobile device to in-depth online research. These first time home buyers are very likely to need help and guidance in navigating their first home purchase. With an interesting housing market over the past year and in the year ahead, we recommend all REALTORS® know the challenges they will face and how they can set their clients up for success.
One of the largest trends and challenges of the current market, and particularly with the crowd of first time home buyers is inventory. REALTOR® Magazine states: “Nearly six in 10 buyers between the ages of 22 to 40 say that finding the right property is the most challenging step in the buying process. That is a problem widespread across age groups: More than half of all buyers—53%–report finding the right property as the most challenging step.” Set expectations with your clients early, and understand what they’re looking for to prevent any frustration during the shopping process.
With inventory at an all time low, bidding wars have become even more common. First time home buyers might not always understand where to draw the line in terms of their budget. Other buyers might actually have more wiggle room than they had thought! Realtor.com states: “For first-time home buyers, this past year’s change in the economy, employment, and especially dropping interest rates offered surprises, with 47 percent being pleasantly surprised that they could afford a higher-priced home. On the flip side, 21 percent were surprised that their budget was lower than they thought.”
Once you have an idea of your client’s budget, you can set your sights on helping them to secure their funding with the bank. Getting the mortgage can be a part of the home buying process that both REALTORS® and buyers shy away from, as it can be a lengthy process…plus the paperwork, ugh! This is where a little hard work and research can really pay off when looking for perks for the first time home buyer.
There are many advantages that a first time home buyer has over a repeat buyer. In a recent article from REALTOR® Magazine: “First-time buyers also have access to grants and down payment assistance programs that are unavailable to repeat buyers. While repeat buyers have the advantage of using the equity from the sale of their previous house, you can help first-time buyers find assistance programs that may offer thousands of dollars in savings.”
Thanks for taking the time to nerd out with us on the latest trends and statistics for the first time home buyer! Please don’t hesitate to reach out to us if you’re looking for a knowledgeable resource on real estate in the Hudson Valley. Cheers!