Buying your first home is both exciting and a little overwhelming. There’s a lot that goes into the process—applying for a loan, making an offer, inspections, appraisals, due diligence, escrow… It can be a lot for an inexperienced buyer! But the good news is that you’ll hardly be the only new buyer on the hunt; nearly 60% of prospective buyers in the South are buying for the first time!
How to Find Guidance When Buying Your First Home
In June 2020, first-time home buyers accounted for 35% of all existing home sales—a number that’s been growing in recent years. Historically low interest rates have been a large driving factor in the increase in new buyers; hundreds to thousands of dollars in potential savings have motivated many would-be buyers to make a move.
Mortgage payments are lower than ever
Since March 2020, we’ve seen week after week of record-breaking mortgage interest rates. In the week ending July 16, the fixed-rate mortgage dropped to just 2.98%, sending the estimated average mortgage payment below the average rent payment. For many who’ve been considering buying a home, those substantial savings are enough to push them to make a move.
Many younger buyers are first-timers
Unsurprisingly, many younger buyers are also first-timers—84% of Gen Z buyers are buying their first home, as are 68% of millennials, 52% of Gen X buyers, and 21% of boomers. Interestingly, over 60% of Northeast and South prospective buyers are first-time buyers, compared to 55% of Midwest and Western buyers.
First-time buyers face numerous challenges
Despite the steep interest in homeownership, many need guidance and support to be able to reach their goals. A large share of would-be buyers may even opt to continue renting because they feel the process of buying is too challenging or overwhelming. Of those who do wish to continue, only a minority know where to find advice and helpful information.
Today, nearly 70% of buyers think the process of buying is complicated. And nearly 60% require additional guidance on saving to purchase a home.
A local real estate agent is a good place to find advice
If you’re one of these overwhelmed first-time buyers, the good news is that starting the process, and getting more information, is as easy as finding a good local real estate agent. Since more and more new buyers are entering the market, more and more agents are finding new ways to better meet the needs of inexperienced buyers. A qualified and experienced agent can help you understand the buying process, review your current goals and financial situation, and help you make a plan to find the home that fits best for you.
Ready to Buy Your First Home in the Triangle?
Thinking about buying your first home here in the Raleigh area? Contact Linda Craft & Team today. Throughout our 350+ years of combined experience, we’ve helped hundreds—if not thousands—of first-time buyers find the perfect home. Call us today at 919-235-0007 to learn more or get started.