Purchasing a new home in 2024 can be a nerve-wracking experience, especially if you’re a first-time home buyer. But it can also be an exhilarating and even fun one when you have the right real estate agent doing most of the leg work for you.
Maybe home and mortgage prices have spiked since the pandemic, but bargains can still be found. You just need to look for them.
From houses for sale in Woodinville, WA to Westchester, NY, today’s home and property buyers are said to be exhibiting new trends when it comes to making a solid offer.
These trends are indicative of the times and are worth paying attention to. This holds true if you’re planning on selling your existing home at some point soon.
According to a new report by Real Simple, in general people are still on the hunt to purchase a home for the first time. Or so says Opendoor’s 2024 First-Time Homebuyer Survey. However, these new homebuyers are going about the process a little differently than in previous periods.
A representative of Opendoor states that lots of first-time homebuyers find themselves in a “state of limbo.” They are concerning themselves with watching mortgage rates and home prices fluctuate while the sellers hold firm on the sidelines for a the time being.
But despite the financial hurdles many home shoppers remain determined to buy a new home either on their own, or along with a significant other, or even a platonic partner.
That said, here are 5 important trends new home buyers are abiding by in 2024.
Co-Buying with a Platonic Partner is Becoming all the Rage
The Opendoor survey indicated that co-purchasing with a non-romantic partner is becoming a popular choice with more than three-quarters of new buyers.
More than half the buyers are still buying with their significant romantic partner, but others are choosing to co-buy with a friend. The majority of these buyers tend to be young men.
It should be noted that co-buying with a friend is a terrific option for more cash-strapped first-time purchasers.
Cost Remains a Major Concern
Affordability has always been a major factor in making the decision to buy a home for the first time. In 2024, it’s become an even bigger concern.
The survey noted that over half of would-be first-time home buyers put off their decision to buy a home due to their financial situation. In a word, they just didn’t feel they were ready to take on that kind of fiscal burden.
Many of these buyers who are putting off purchasing are waiting for mortgage rates to come down. Real estate agents are said to be encouraging potential buyers to patiently wait until they feel the time and economic circumstances are right for their individual situation.
When buying a new home, you need not only factor in the monthly mortgage payment, but all your other payments such as a car, energy, gas, food, and even the daily morning Starbucks coffee.
Home Buyers are Looking for a Stress-Free Experience
Let’s face it, purchasing your first home is a very big deal. It’s a major responsibility that can be fraught with mistakes.
More than 90 percent of the Opendoor survey found that the homebuying process, while exciting, can also be stressful. The pressure that goes with having to act fast if a bidding war erupts on behalf of a home, makes it even more stressful.
Three quarters of the respondents to the survey who were under 40 years old felt the pressure of not missing out on a good opportunity when compared to buyers who were over 40.
In the end, close to 65 percent of many first-time homebuyers questioned whether the stress of purchasing a home was worth it. But once the deal went through, many decided the anxiety was indeed worth it.
Home Tour Burnout Can Be Problem
The average first-time home buyer in 2023 looked at about 23 homes. But Gen Z buyers are said to be a little more indecisive than previous generations. They tended to look at more than 30 homes either in-person or in a virtual setting.
Millennials looked at 22 homes on average, while Gen Xers looked at just 20 on average. Putting aside generational labels, potential buyers with children in tow toured fewer homes simply because they didn’t have enough free time to do so.
Opendoor stresses that touring too many homes can lead to burnout. Due to all the options to compare taken along with the fear of buyer’s remorse, lots of first-time buyers feel like there might be something better out there. This kind of emotion makes it difficult to decide on choosing the right house.
Buyers Are Willing to Compromise
In the final analysis, despite looking for their “dream home,” many first-time homebuyers were willing to make compromises when finally deciding to buy.
Over 32 percent did not purchase a home in the area they initially searched. More than 20 percent bought a home that was smaller than they originally wanted.
However, despite the stress and strain of making the tough decision to buy their first home, almost all were pleased with their purchase and happy to be living the “American Dream.”
