The pandemic and resulting recession have put a twist and a lot of uncertainty in many people’s financial plans. But many renters who have been fortunate enough to sustain employment during the pandemic are finding they are able to take the leap on their dream of purchasing a home, some earlier than they expected to be able to. Partly because of market shifts that have resulted from the pandemic.
How the Pandemic is Helping First Time Home Buyers
Yes, home prices are at an all-time high, but mortgage rates are also at a historic low. Rates are so low that they are helping to make homeownership even more attainable and affordable. In addition to the low rates, stay at home orders have encouraged and allowed people to save money that was usually spent on going out to help with a down payment, says a recent survey conducted by realtor.com.
Millennials are Buying
The survey also found that 49% of millennials, the highest number of current home buyers, pushed up their plans to purchase a home due to the current affordability. Three-quarters of the millennials that took the realtor.com survey are currently working from home and about two-thirds of them are looking to purchase a home because they are now able to work remotely.
Just over a quarter of the survey participants are looking to move because their current living arrangements no longer meet their daily life needs. They are now hoping to find a home with an office, plenty of space for everyone in the home to do work online (including kids doing zoom school meetings), and a big backyard. About 23% of survey participants are hoping to buy a home and grow a family and want to move to a home in a safe family-friendly neighborhood.
Contrary to some recent polls and reports on home buying trends. 49% of the millennials in the realtor.com survey say they are looking to purchase a home that is still inside the city they currently live. A significant 31% of millennial buyers did answer though that they are looking into moving to the suburbs. 13% of those surveyed said they are looking to move to another city within their current state and just 8% are looking to move out of state.
Now is a great time for first time home buyers to look at their options for buying a home even if they have wanted to purchase for some time, but don’t believe they are able to. Some potential buyers might be surprised at the options they qualify for.
More Tips for Home Buyers:
- 9 Valuable Tips for Moving Into Your First Home
- How to Take Advantage of Home Buying Affordability Right Now
- 3 Things to Do Now if You Want to Buy a Home Later
- 5 Ways to Avoid Damage When Moving
- 10 Ways to Rejuvinate Your Home