The New Housing Market: How First-Time Homebuyers are Waiting Longer than Ever
March 27, 2023
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For many, entering the homebuying market can be a time of uncertainty with a steep learning curve. And now, that learning curve has just become even steeper — and longer.
According to a recent report issued by the National Association of Realtors (NAR), there’s been a noteworthy shift in the demographics for all first-time homebuyers, defined simply as someone who is buying their very first home.
According to the report, the total share of first-time homebuyers reached an all-time low in mid-2022, due in large part to a lack of affordability. The NAR surveyed more than 150,000 recent homebuyers in July of 2022. Among the 4,854 completed responses, the NAR found that roughly one quarter, or a meager 26% of respondents, were first-time homebuyers, down from about a third of the market, or 34% in 2021.
What’s causing them to wait to jump into the housing market? Based on findings from the NAR, a lack of inventory for available homes on the market, higher housing prices, and rising interest rates contributed to the new low level of homebuyers securing their first home purchase.
In addition, the report found that the average age of the first-time homebuyer had risen to an all-time high of 36 years old. This was a change from an average age of 33 during the previous 12 months, and the oldest since the survey began in 1981. (That year, the median first-time homebuyer’s age was 29.) During the next 30 years, that figure barely rose, as it was only 30 in 2010. But just in the past decade, the median age grew more significantly, reaching a record high last year.
The rise in home prices also means that buyers generally bought homes for the full asking price, if not beyond. The report actually showed that 28% of buyers were getting homes for more than the asking price. This has led to more first-time buyers forced to save longer to afford a down payment, or wait longer for a transfer of generational wealth.
How does this translate for anybody about to buy or sell their home? Ultimately, it means that if you have a home you love, it could benefit you to stay. And if you find a new one you love, consider weighing the long-term costs to you of what happens if you wait even longer to make an offer.
For a deeper understanding of the NAR report, check out what Business Insider had to say about it.
At Beltmann, we’d love to help you prepare for any upcoming moving and storage needs, whether it’s simply across town or a full long-distance relocation. As a first-time or repeat homebuyer, your possessions matter. Contact us today for a free contactless quote, and we’d be happy to help walk you through the process.
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