As 2021 is quickly coming to an end it’s time to start preparing for 2022. Since I don’t own a crystal ball it’s hard to say what the real estate market may do in the coming year, but I can make a pretty safe bet. Most predictions are that the market will remain steady in the new year and lack of inventory will continue to keep home prices high and sellers having the upper hand in the market! With that said it’s probably gonna be another year of buyers having to be on top of their “game” to get offers accepted on the home of their dreams.
Our friends at NAR shared this survey of first time home buyers and what they are willing to do in 2022 to get that first home.
The ultra-competitive housing market may be particularly tough on first-time home shoppers. First-time buyers don’t have the equity of a previous home to sell either to help fund their next house purchase. They must rely on savings—and the amount they need has been quickly growing. Home prices have climbed by double-digits annually over the past year alone.
More than a quarter of hopeful first-time house hunters were unsuccessful at purchasing a home in 2021, shows a new survey of 500 aspiring first-time home shoppers conducted by realtor.com®.
“Despite a challenging year, aspiring first-time home buyers are surprisingly optimistic about 2022,” says George Ratiu, manager of economic research at realtor.com®. “They’re looking at the new year as a fresh opportunity to make their dreams of owning a home come true and our survey suggests that they’re armed with information and ready to compete for their first home.”
Many first-time home buyers recently surveyed say they’re ready to expand their budget if need be. Thirty-two percent of first-time buyers said they’d be willing to pay 1% to 5% above the list price, 17% would be willing to pay 6% to 10% above the list price, and 7% were willing to pay 11% 15% over the list price to get the home they want. Thirty-nine percent of respondents said they would not be willing to pay more than the asking price.