Laws of the land that a majority of millennials were raised in seems to no longer exist, leaving many in a downward spiral. Student loan debt is crippling and, folks barely have the means to rent a place comfortably. The added pressure of a pandemic has made odds even worse, but if you are in good standing financially, here are things to consider as a first-time homebuyer:
Lack Of Inventory In The Housing Market
The pandemic meant incredibly low interest rates but with this came less people willing to sell their homes in fear of loosing money and not having anywhere to move next. Not to mention, homes becoming an incredible asset in a time where many businesses are opting to a work-from-home industry standard. According to the National Association of Realtors, since 2019, the housing market dropped 23% in inventory.
With less homes for sale, there is less for first-time home buyers to choose discover and consider.
A “Home” Looks Different Now
Adapting to post-pandemic living means places have newer functions and, people are looking for more live-in space now that their homes are their offices and schools for their children.
Making a return to the office is uncertain, so as a first-time homebuyer looking to move, consider your commute times if you are expected to revisit the office soon. But think fast, many are looking to buy and homes are going fast. With the appraisal gap, you may be forced to put down more money as a downpayment and with less time to contemplate your decision.
But…Not Too Fast
It’s better to set yourself up by staying within your allocated budget and save yourself financial hardships in the long run. It’s been a tough year and a half and, buying your first home should bring you joy. Enjoy the process and don’t give up hope–you’re dream home awaits you (and hopefully at a price point you desire). Good luck!