What I keep reading about these days is the fact that, at age 31, it looks like I’ll have to wait five years to buy my first home – at least the number. The average age of first-time home buyers in 2022 will be 36. In 1985, it was 29.
High interest rates and the economic downturn have reduced housing prices in many markets around the country, with many expected in 2023. What made this situation so real is that it may show There’s a real opportunity that can open up for first-time home buyers in boomtowns. which has not only led to price increases in general market conditions but also in the large number of remote workers leaving for the big cities prices, and investors following on their heels feel a smart money game.
While some of the virus outbreaks have declined, metro areas such as Austin, Phoenix and San Jose, as well as Las Vegas, Colorado Springs and even Seattle, have seen the most significant slowdown in appreciation rates, according to a Redfin’s latest report. .
In Austin, the price per square foot in October rose 1.3 percent year-over-year, which is a significant decrease from the 24 percent year-over-year increase in February. Here in Southern California, Riverside saw a similar situation. Prices were still up 6.8 percent, but it marked a significant improvement from February’s 25.6 percent. In the north, San Jose – another recipient of the disease’s population and business – saw a decrease in the price year-on-year to 1.6 percent in October compared to increase of 20.4 percent in February.
While affordability remains a real concern, some first-time buyers in these markets may have an opportunity to buy a home sooner than expected.
I believe our country’s rental market will continue to heat up and be affected by the increased demand for less space. (Consider this statistic: About 14 renters apply for a single vacancy nationwide. In some high-demand markets like Miami-Dade, that number is more than doubled to 31, averaging 27 in east Los Angeles and 24 in San Diego.) But the cold weather caused by the pandemic may provide some immediate sales opportunities for first-time home buyers in some market.
It provides an opportunity not only for those who want to buy their first home, but also for those who support them in the journey, to are home buyers. Many agents in many regions of America focus exclusively on the buy-to-let market, selling listings and judging them to represent less money for more effort. But, supporting customers (hopefully with technology tools that can speed up and simplify the process) will also be a way to improve relationships and become a trusted advisor to tomorrow’s home buyers. In other words, agents should not miss out on helping tenants in today’s competitive market, so they are ready when tenants decide to buy their first home.
I have attended more than 30 business meetings this past year, and at many I have had the opportunity to speak with industry leaders and agents to hear about their successes, their challenges and their consider the market. At the California Association of Realtors’ REImagine conference here in Long Beach in October, I particularly remember talking to an agent who emphasized how he continually helped tenants and built the relationship that ultimately led to the selection of to support them in their first home purchase. .
As for me, while I am committed to Southern California and enjoy my neighborhood in West Los Angeles, I may try to beat the numbers and open my eyes to the north where there may be a sales opportunity. But first I call my trusted real estate agent to get some of his expert advice.
Michael Lucarelli is the CEO of RentSpree.