NAR: First-time buyers comprised 34% of all home buyers in 2021 and the share is rising. Real estate pros can help them understand the market and manage expectations.
WASHINGTON – Research by the National Association of Realtors reveals that first-time home buyers comprised 34% of all home buyers in 2021, an increase of 3 percentage points from the previous year.
As the market continues to shift, prospective homeowners who have been sidelined from the real estate arena for the past few years are starting to find opportunities. Real estate professionals can assist clients by providing them knowledge about the home-buying process, which can be impacted by cooler or hotter market conditions.
Would-be buyers also need to understand what they need versus what would be nice to have. Their expectations may fail to correspond with available inventory or fall outside of their price range.
The latest Federal Housing Finance Agency House Price Index shows that housing prices are up 1.4% over the last month and 18.3% from last year, indicating that it is still important to move quickly if a deal is found.
Buyers also need to be aware that townhouses, duplexes and condos tend to have lower price points, shared amenities and other perks. Agents need to be proactive in their communication and contact buyers clearly and often.
Once buyers become reluctant, it tends to indicate they are losing confidence. To help them feel secure, agents need to stay in contact up until closing day. The aim is to prepare buyers for such things as reading and understanding their inspection while catering to their emotional state.
Finally, agents need to provide more education regarding their financing options. Surveys show that key barriers to homeownership include affording the down payment.
Source: Inman (09/07/22) Murphy, April
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