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.
The most common reasons for recently purchasing a home – differed between the generations. But for all three groups under the age of 66 years, the main reason for purchasing – was the desire to own a home of their own. Add with such low interest rates – this IS the right time for them to buy!
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.
Plus, if you work with Our Team – we have insight into “off market” homes that may offer a solution.
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!
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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.