"Demure and Mindful" for First-time Buyers
First-time buyers are "demure and mindful," facing high prices and rates. They often move from family homes and use agents to navigate a competitive market.
CHICAGO – No one likes jumping on a social media bandwagon more than NAR Research. So, by way of a recent meme, looking at the data, let's focus on first-time buyers. First-time buyers have to be "demure and mindful" in many ways.
Finances
Housing affordability is a struggle, with current high home prices and elevated mortgage interest rates. In nearly half of metro areas, home buyers need a family income of at least $100,000 to purchase a home with a 10% down payment. Since first-time buyers do not have housing equity to rely on, they are making financial sacrifices to enter homeownership. First-time buyers today are older, with a median age of 35 and a household income of nearly $25,000 more than the past year. They have had time to be demure and mindful of their home purchase.
Prior living situation
First-time buyers may also be demure and mindful before even entering homeownership. Nearly one-quarter of first-time buyers purchased their home after moving directly from a family or friend's home. Living at a family home to save for a down payment epitomizes being demure and mindful of one's finances.
Buyer offers
While more inventory is trickling into the housing market, there is still limited inventory. First-time buyers have to be patient when there are multiple offers. The typical seller receives more than one offer, and the typical home sells in under a month, which indicates a fast-paced housing market. First-time buyers typically have a smaller down payment and less room to negotiate on home price. They must be demure and mindful that they may have to place offers on more than one home before a contract is accepted.
Working with a real estate agent
Eighty-nine percent of home buyers use a real estate agent or broker to purchase their home. Buyers want a real estate agent or broker who is not only able to help them find the right home but is going to help them negotiate and to help them explain and understand the real estate market. These factors are especially true for first-time home buyers. This is the biggest financial purchase of one's life, and real estate agents are helping buyers achieve the American dream. Certainly, one can consider helping a home buyer achieve part of the American dream as being demure and mindful.
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