First-Time Home Buyers Find Unexpected Benefits in Current Market

There’s no denying that low inventory and increasing prices have presented challenges for buyers in today’s market—and that includes first-time buyers.

But the market also offers a slew of benefits for first-time buyers—and many have had a positive experience buying a home in recent months.

A recent survey from realtor.com asked over 1000 recent and prospective first-time buyers about their experience buying a home in today’s market—and much of the news was good. Some of the biggest benefits buyers experienced include:

• Buyers are pleasantly surprised at how much home they can afford. Between March 2020 and January 2021, mortgage rates dropped a full percentage point—from 3.65 percent to 2.65 percent—and that drop in rates has given many first-time buyers more wiggle room in their budget than anticipated. Nearly half of respondents (47 percent) said they were pleasantly surprised that their home-buying budget was higher than expected.
• The majority of buyers found what they were looking for in a home. When you buy a home, you want to make sure it checks all the items off your “must-have” list—and in today’s market, that’s the experience for most buyers. A majority of first-time buyers (61 percent) were able to find a home that had all the features and amenities they were looking for—and within their budget.
• The majority of buyers found their homes within a year. Even with the inventory and pricing challenges, first-time buyers are still finding homes relatively quickly—with over 80 percent of first-time buyers finding and buying their home within the span of a year.

The Takeaway:

So, what does this mean for you? If you’ve been thinking about buying a home for the first time, many other first-time buyers are having a positive experience in the market—making now a great time to make a move.