Michigan First Time Buyers Face a Challenging Market;
but Home Ownership is Still Within Reach
On the back of a global pandemic and economic uncertainty, combined with high demand for low-mid priced properties, buyers need to be super-savvy to secure their first home. It’s difficult, but certainly not impossible.
The new focus on working from home means the housing market has been flooded with those seeking more space. Millennials are now the most likely group seeking their first property; but now at the age that they’re thinking seriously about starting a family. All this, alongside an historical shortage of suitable homes means many are dragged into fierce bidding wars that only the healthiest budgets can survive.
Pre-existing debt is another barrier first time buyers are faced with, so this is definitely the first thing potential buyers should be tackling. With rates still at historic lows, now is a great time to start making a debt-clearing, or a savings plan, depending on your current situation. The recent pandemic has meant a lot of potential socializing and events have been cancelled. Along with the savings to be made from working from home; now is a great time to maximize any extra cash you have and make it work for you, rather than spending it.
“The market has been extremely competitive,” says realtor.com Senior Economist George Ratiu. “There is a critical shortage of homes for sale, which has caused multiple bids to become the norm across the country.”
“For first-time buyers, especially, this environment means having your financing and budgeting together is paramount,” he adds.
But there is still good news. According to a recent survey from realtor.com, about 47% of first-time buyers were thrilled to find their budgets were larger than they had thought. That’s largely due to mortgage rates, which averaged just 2.73% for a 30-year fixed-rate loan in the week ending Jan. 28, according to Freddie Mac.
Homeownership doesn’t come without sacrifices: over a fifth of first time buyers chose expand their search to different neighborhoods, the same number had to compromise on home features on their wish lists and 52% borrowed money from friends and family.
It’s true that this year, like last will be a challenging time for first time buyers, but it’s still possible to buy a home in the current climate. However it’s clear that it takes, preparation, decisiveness and financial stability. Plenty of new homeowners were discouraged at one point by the market, or their own financial situation only to be amazed at how quickly it all came together once they made a plan and put the effort in.
Julie Krumholz Can Help Michigan First Time Buyers
With 35 years of industry experience, Julie Krumholz has worked in nearly all aspects of mortgage banking.
Throughout the years she has worked in processing, closing and loan origination, underwriting, QC auditing and has even co-owned a mortgage brokerage firm.
If you are looking for an experienced Lender in Michigan, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.
