Facebook
Twitter
Pinterest
Copy Link
Buying your first home is not only a right of passage, it is also the key to building wealth.
Yet more and more young, first time home buyers are putting off homeownership.
The age of the typical first timer is up to 36. Why?
According to the National Association of Realtors the number of first time home buyers fell to its lowest level on record last year, as young adults are facing a longer path to homeownership than in years past. First time buyers made up just 22% of buyers in 2022, down from 34% the year before.
“One of the biggest things holding them back is student loan debt,” says Pilar Castro, Sales Associate at ERA Justin Realty, “Plus, when there is a bidding war people who already have equity in a home have more buying power. However, first time homebuyers can overcome these issues when they’re armed with the right information.”
Here are some keys to success for first time homebuyers in the current market.
20% Down is not a hard & fast requirement
You may already have a down payment saved, you don’t need as much as you think! “20% down is a myth. Some first-time homebuyers put down as little as 3%,” says Castro. Some put down none thanks to public and private first-time homebuyer programs across the country.
“They can help you get into a house with little to no money up front,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty. “You just need to know where to look for the programs to see if you qualify. The right mortgage lender or real estate professional can help you find one.”
Explore Every Option
Accept the possibility that you won’t get your dream home right away. It’s a seller’s market, which means there are not enough homes on the market to meet buyer demand. “Take that into consideration when making your list of needs. Could a condo or a townhouse do for now? Quit paying your landlord rent, get your foot in the door and start building your own personal wealth,” says Castro.
Face Facts
The bottom line: Buying your first home right now is tougher than it was a decade ago. But that should not hold you back. The right real estate professional can help you. Give Pilar Castro or any of the agents at ERA Justin Realty a call at 201-939-7500.
