Despite the soaring prices of homes and increasing interest rates first-time buyers are still managing to navigate the intricacies of the housing market. According to the National Association of Realtors®, first-time buyers accounted for 32% of home purchases in 2023 an increase, from 26% in 2022.
These determined buyers generally have a standing compared to their predecessors with a median household income of $95,900. To overcome obstacles they are making sacrifices such as reducing expenditures and borrowing against their 401(k) retirement plans.
Who exactly are these buyers?
The majority of homebuyers consist mainly of individuals (81%) with an age around 49 years old. Couples, whether married or unmarried form the portion of buyers while single women make up 19%. Enough 70% of these buyers do not have children under the age of 18.
What motivates them to sell?
The increase in mortgage rates has caused many homeowners to reconsider selling their properties. However, some homeowners are driven by lifestyle changes such, as relocating to family or needing a smaller dwelling.
What kinds of properties do they prefer? The typical home that people usually buy is a house, with three bedrooms, two bathrooms and located in the suburbs. Most buyers prefer owned homes while 13% choose to purchase newly built houses.
Which Areas Are They Moving To?
Suburban areas remain the choice with 47% of buyers finalizing their deals in these neighborhoods. There has also been an increase in buyers looking for homes in areas rising from 10% to 14%.
The Importance of Real Estate Coaching
Real estate coaching can play a role in assisting first-time buyers as they navigate through the housing market and make well-informed decisions. Coaches guide aspects, such as finding the real estate agent and securing financing.
Despite the challenges, the housing market remains strong due to people’s desire for homeownership. First-time buyers, fueled by determination and receiving support are making their way, into the market. Accomplishing their dream of owning a home.