Try to ask a first-time homebuyer regarding their house hunting, and they will surely tell you that their search is not an easy one. It is difficult to save up for a house, and it can also be tricky to find a mortgage with your desired rate. On top of that, good timing is required to beat other contenders in the most ideal house.
However, the latest statistics revealed that first-timers don’t have signs of giving up. The truth is that they are now buying more houses than they did for the past 12 years. This is a great sign for the housing market and may even encourage others to reach their dreams of homeownership.
If you are excited to buy your first house, the fact that you are not alone is both bad and good news in itself. However, with the right approach and careful planning, you will have better chances of closing the deal on your first ever home.
What’s Behind the Trend of More First-timers Buying Homes?
Experts say that there are several key factors which drive the increased sales of houses among first-time home buyers. Among these is the enhanced condition for workers and borrowers.
The interest rates were below or at 4% between the years 20014 and 2017. The wages are also higher, with the rate of unemployment going down t about 4% as of now.
There are many experts who agree on this. Fewer people are underemployed or unemployed among people who are younger than 35 years old. This means that the stable employment and increasing income are driving the trend.
They also added that millennials have now reached the peak years of buying which creates more pent-up demand.
Millennials are now starting to reach their 30s, with most of them getting married then having kids. Such activities have lead to the desire of buying a house.
On top of that, rents are now increasing steadily for 5 or more years. This makes the price of owning a house lower compared to renting in most cases.
Do Something as Soon You Can
Experts say that the demand among the first timers is not going to go away anytime in the near future. This trend among millennials who are joining the housing market is going to continue. It is because of the growth in the household formations. If these findings are not motivating more people to make their first home purchase, another factor is going to.
Prices are now going up which creates some sense of urgency for the buyers to make a purchase sooner. If one can purchase now and would like to buy, they have to do so right away because delaying can prove to be expensive.
What Actions Can You Take?
There are several tips you can do to afford and buy a house. First of all, look for and work with a reliable real estate agent and lender you can trust. Also, never be afraid to opt for a mortgage with a low down payment. You also have to be more open-minded when it comes to your housing options.
Relevant Real Estate News and Local Events..