The booming housing market is making it difficult for those wanting to buy their first home to top the competition in a price war. But aspiring first-time home buyers aren’t giving up.
Only a quarter of aspiring first-time buyer respondents recently surveyed said they were strongly confident that they’d be financially ready to purchase a home in the first half of 2021, according to the latest First-Time Homebuyer study from Chase Home Lending. But the majority of these would-be buyers are still taking steps to get their finances in order to buy as soon as they see an opening in the market.
Seventy-seven percent of respondents said they were actively saving for a down payment; more than half planned to look into down payment research programs; and 66% said they had created a monthly budget and were working to improve their credit score. Seven in 10 respondents said they are making lifestyle changes to be able to afford a move soon.
Even as bidding wars become the norm and home prices rapidly rise, consumers still are eager to buy. After all, 69% of aspiring first-time buyers said they still see homeownership as an important part of building wealth, the survey found.
Chase Home Lending surveyed about 1,100 consumers who indicated they were looking to purchase their first home. Sixty percent of respondents said they were hopeful to purchase a home in the next 12 months.
But it still comes down to the financing that will be available when they are finally able to buy. Nearly 60% of respondents said they were reevaluating how to finance their first home and that would strongly affect when and whether they’d be able to buy. Read more: 5 Mortgage Trends to Watch
Source: “Chase Survey: First-Time Homebuyers Still in the Hunt,” MillionAcres/Motley Fool Service (July 15, 2021)