The new year marks the time for a change, even in real estate. If you have plans of investing in your first home this year, then you ought to know the latest trends that are shaping the world of other buyers in the market. These can influence your next move and see if homebuying is really something you are ready for the year.
As the real estate market fluctuates, even the trends continue to change. We may only be a few months in 2021. But numerous trends have caught the eye of experts that everyone ought to know. Keeping an eye on these trends will help you gain a distinct advantage and make better decisions from finding the best mortgage deals to closing the sale.
Here are some first-time homebuyer trends that are dominating today’s market:
2021 as a Seller’s Market
The real estate market is either dominated by the sellers or the buyers. Last year, it was a seller’s market as more homeowners chose to hold on to their properties. More people wanted to buy their first home and safely shelter in place rather than continue renting in packed buildings.
Due to rising real estate prices, many homeowners are delaying home sales. They want the chance to increase the price of their home and reap more money in the process. Those willing to sell their homes got more offers and were able to choose between numerous offers placed by anxious buyers.
This year, experts forecasted that it will still be the sellers who have more power than the buyers. Home prices are not expected to go down anytime soon. This could mean more buyers will either need to be patient in finding a property they can comfortably afford or put themselves at risk of becoming house-rich and cash-poor.
Older Millennials Dominate the Real Estate Market
This year, more millennials are expected to make their first home purchase. In 2014, older millennials started dominating the real estate market in terms of having the largest share of homebuyers. Generation Z shows an interest in homebuying and shows they are slowly but surely wanting to make their first home purchase in the future.
Generation X ranks after older millennials in buying houses. According to a report, more Gen Xers want to move to another city to better prepare themselves for retirement. They are choosing locations along the coast, where life is a lot more slow-paced than in their previous homes.
Young and older boomers ranked third and fourth in the race, respectively. Note that not all boomers are selling and buying their big homes just to downsize and age in place. Others simply want to get rid of their home loans by renting a place instead.
There Are More Unmarried Buyers in the Market
It is not surprising that are more unmarried homeowners this year. This is since more millennials are buying the first homes. For one, millennials are forgoing marriage and childbirth and are choosing to buy a house first.
Note that just because millennial homeowners are unmarried, does not mean they have no partners nor do they live alone. Some millennials are teaming up with someone just so they can better afford a house. With their sky-high debts, they found comfort knowing they can get approved by taking out a home loan with a friend or another loved one.
In 2020, more single women are buying their first homes. They value homeownership more than marriage and having kids. Women included in the bunch vary in age and salary.
More Buyers Would Gamble With Risky Homebuying Moves
Last year, many buyers opted to skip actual property visits. Some went on without a home inspection before making an offer. Some rushed the process by making an offer just to secure the sale and beat other buyers on the market.
There are also buyers who would be willing to take drastic measures to instantly afford a down payment for the home loan. They either exhausted their savings, asking for down payment gifts from family and friends, or even secure a personal loan. This placed many buyers at risk of financial setbacks.
Such a trend is expected to continue unless more homebuyers open their minds before it is too late. Realizing that rushing the process is not a good idea especially for such a great investment should be a priority for every buyer. Whether this is your first time buying a house or not, home inspections, on-site property tours, and getting a home loan you can actually afford are crucial.
These are but four homebuying trends we can expect to continue this year. Using these trends to your advantage will help you craft informed homebuying decisions. Learn from the mistakes of other homebuyers and you can get the most out of your first-time homebuying experience.
