There are many current trends for first-time homebuyers. According to the National Association of Realtors, millennials are no longer the largest population of first-time homebuyers. Instead, it is 55- to 74-year-olds who make up approximately 44% of home purchases in 2023.
There are several factors that led to this drop in millennial homebuyers, including the supply of houses for sale, high mortgage rates, and high home prices.
If you are a first-time home buyer in or around Lexington, SC, work with the Lafayette Team with EXP Realty. We specialize in working with first-time homebuyers and sellers and can help you find your dream home.
In this article, we’ll offer some home-buying strategies for Gen Y and Gen Z.
3 Home-buying Strategies
While the housing market is challenging, it should not stop the millennial and Gen Z population from seeking homeownership. However, it will require some creativity. Here are a few strategies that might help:
Choose your property carefully
Prices tend to be more affordable outside of the larger cities and suburbs. According to the National Association of Realtors, 19% of home-buyers have moved to rural areas in the past year.
You may also want to consider a home that needs some TLC, as these are often cheaper than a move-in-ready home. Plus, the competition for these homes is often lower.
You may also want to ask for some assistance with your mortgage rate if the one you’re quoted is too high. This is known as a “rate buydown”, which allows someone to pay an upfront fee that reduces your rate for the first few years of your loan- or permanently, in some cases.
Another option to consider is to ask your friends and family for help with your down payment. In fact, more than 20% of homebuyers did this last year and 40% co-purchased their home with a parent, sibling, or friend.
When you’re ready to purchase a home, it’s important to take your time. You should put some work into improving your credit score and research lenders before making a decision. This will help you find out what you can afford and the terms you can get.
If you can’t afford to buy right now, consider moving in with a friend or family member. In fact, more than 27% of first-time homebuyers did just this in 2022.
Find Your Dream Home with The Lafayette Team
Ready to get in on these trends for first-time homebuyers? When you’re ready to make the leap into home ownership in Lexington, SC, consider working with the Lafayette Team with EXP Realty. We specialize in working with first-time homebuyers and sellers. We believe that homeownership should not be stressful and will work with you every step of the way to help you find your dream home.