First Time Homebuyers Get Resourceful
I have a handful of first time homebuyers looking to enter the market in Summer of 2023 and their largest concern right now is affordability…and with good reason. While mortgage rates continue to decline ever so slightly week over week, affordability is still a huge hurdle along with a still limited inventory and buyers are thinking outside of the box to get to the closing table and into their very own place:
Friends with Benefits: No, not those kind of benefits…the building home-equity-together-type of benefits! For the first time in our data history…a full 5% of first-time home buyers bought homes with individuals that they had no romantic ties to whatsoever. While all parties should protect their interests while going into this arrangement and create clear lines of ownerships; this arrangement can help single buyers put their money to work for them instead of being held hostage by raising rents and landlord demands.
No place like home! 14% of home buyers were buying with family members such as aging parents or grandparents for caregiving, companionship and pooling of resources. While this gameplan may not be for everybody, multi-generational buyers can typically afford a much more desirable home and location.
Drive till you qualify! The median distance homeowners moved jumped to 50 miles from 15 miles…another all time high. Longer commutes but greater affordability. Of course, for the WFH folks, commutes are now a thing of the past and they can solely focus on their list of wants regardless of location. If you look in particularly rural areas, you could possibly qualify for a USDA loan which requires no money down and typically has less buyer competition.
It’s Got Good Bones: Again…this may not be for everyone but if you’re particularly handy with a hammer or don’t mind stalking Youtube tutorials and putting in some sweat equity, there are still great properties at affordable prices out there. Speaking from personal experience…be honest with yourself on how much DIY you can take on before losing your marbles and whatever the reno cost has been estimated at…tack on another 20%, just in case.