MINT HILL, NC – With older buyers able to offer cash after the sale of their homes, younger first-time home buyers simply cannot compete. Many feel like they will never be able to own a home, with the state of the real estate market today.
Even with a sizable down payment, many first-time buyers have struggled to compete. This isn’t something new, however, as many buyers felt they couldn’t get their offer accepted for the past couple of years.
What do the Numbers Say?
The first-time home buyer percentage is down from the historic average of about 40% to 26%. It’s the lowest since the survey began in 1981.
- The median age of first-time home buyers is 36, which is the oldest since 1981.
- The median age of repeat buyers is 59, which is also the oldest since 1981.
- The percentage of repeat buyers using cash to buy their homes was 27%, which is up from 17% in 2021.
- Only 3% of first-time home buyers used cash to buy their homes.
These states come from the National Association of Realtors and the data was collected from July 2021 through June 2022.
With first-time homebuyers making up the smallest share of the market in over 40 years, it’s not surprising many buyers feel like it’s never their time. Just a couple of years ago, many first-time buyers were struggling to compete with multiple offer situations and that is still continuing, even as the market slows.
Are First-Time Buyers Giving Up?
With the market slowing down, mortgage rates going up, and home prices still remaining high, many first-time buyers are giving up. They are ending their house hut and looking for a nicer place to rent.
When this happens, it causes issues down the road. Many potential buyers are remaining renters, but moving into a place that costs more each month. This makes it harder to save for a down payment to buy a home in the future.
It has gotten to the point now where about 54% of American renters have said they don’t believe they will ever be able to afford to purchase a home. This comes from a Credit Karma survey from October 2022.
The higher mortgage rates, along with the unstable economy and inflation is causing many to shy away from buying a home. This will likely continue and it may be difficult for first-time home buyers for quite a while before the market balances out and corrects.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | email@example.com | www.1stchoicepropertiesinc.com