1 S T T I M E B U Y E R S A R E W I N N I N G I N 2 0 2 4 ! ?
The inability to compete in multiple offers, soaring housing costs, and lack of available properties were significant challenges in their search for a place to call home
First-time buyers often settled for whatever they could secure, which, to some extent, drove the development of new condos and townhomes
Having their own place, without competing offers, relieved serious stress and finally gave them a sense of pride and independence as they had a place to call home
So, what's different today?
Well, those same types of buyers who hesitated to enter the market are now finding a wide range of attractive options not seen in years!
Coupled with forecasts of rate reductions, their confidence in success is soaring They find themselves waiting for the right moment to act
How did this change almost overnight, and how are they winning in today's real estate market?
Click to try the Interactive Tools Below Powered by Synergy Real Estage Group:
Mortgage Caulculator Mortgage PreApproval
Who is a First-Time Buyer?
A FIRST-TIME BUYER IS TYPICALLY:
SOMEONE WHO HASN'T PURCHASED A HOME AND LIVES WITH THEIR PARENTS.
SOMEONE WHO HASN'T PURCHASED A HOME AND HAS BEEN RENTING
The First-Time Buyer in 2024
RENTING
Those that choose the renting avenue over the last 3-5 years, though faced with higher monthly costs, still found various units for lease at lower rates by way of splitting rent with another individual(s) or subleting a room or space Albeit they would not have saved money for a downpayment as fast (or as much), today they should have great credit with savings enough to be successful in purchasing their 1st home Keep in mind, this type of 1st time buyer may experience a higher rate/monthly payment on their mortgage approval which might require a parent or guarantor to co sign
LIVING AT HOME
Those that stayed at home, essentially faced the same outcome and possible requirement for a guarantor or co-signer, however they generally had a slightly higher downpayment IF the individual was was not responsible for the overhead of shared living expenses and was able to stick to a budget and save money agressively. Many times, individuals found themselves spending more while still being at home given the lack or need to save for expenses.
Key to Success in 2024:
An attractive and KEY factor for First-Time Buyer su Windsor/Essex County was that they had no “House to Sell” conditions
Earlier in the year when there was a higher volume of multiple offers happening, traditional buyers purchasing had confidence that even though they chose NOT to include a House to Sell condition (but in actuality did have a house they NEEDED to sell), found they still were able to unload their property at a price range suitable to obtain financing on their new purchase
As the year went on, buyers that had to sell (and were doing so in order to acquire financing), were seeing less and less of the amount they originally needed Less bang for their buck
Let’s fast forward to today Virtually NO GUARANTEES of selling exist and that “traditional buyer” who owns a home is forced to include a House to Sell condition (and in many cases a Financing Clause) which more often than not, makes their offer much less attractive and ultimately excludes them from being chosen by a seller in a multiple offer situation
Enter the 2024 First-Time Home Buyer:
“As a professional realtor since 2007, this has always been goal #1: enabling clients to make educated decisions with peace of mind over time.”
Pre-approved or pre-qualified (note: these are different), with no house to sell and a flexible closing date at the seller's discretion Voila! First-time buyers are now winning due to their financial strength, minimal to no conditions (with the exclusion of the house to sell), and flexibility on closing dates all of which are music to a seller's ears
It's even arguable that in some cases, multiple offers now occur among first-time buyers themselves Depending on the property, motivated sellers may not receive the interest they anticipated, enabling firsttime buyers to negotiate terms and conditions in their favor
As a professional realtor since 2007, this has always been goal #1: enabling clients to make educated decisions with peace of mind over time
Returning to the earlier statement, first-time buyers in Windsor/Essex County are so confident in future affordable real estate choices that they are willing to wait but why?
Mortgage rate reductions are forecasted However, this strategy carries slight risks if buyers lack an experienced realtor capable of interpreting market indicators early enough to negotiate and purchase just before the real estate market rebounds Buying at the lowest point before a rebound, assuming the market continues to rise thereafter, is crucial.
Let me be clear: rebounds can occur in as little as a week! Therefore, successful negotiation for their dream home is critical before options diminish and prices rise
MATTHEW BUSCHMAN
What can we learn from this? Whether you are a resale client, investor, or first-time buyer, always position yourself to safely sell or acquire in any market through smart, well-timed initial purchases or leases, budget balancing to save effectively, and regular consultations with a knowledgeable professional to stay abreast of current and forecasted conditions
Qualified first-time buyers should anticipate success into 2025 in Windsor/Essex County, but this may shorten depending on how quickly the government reduces rates.
Monthly updates are recommended for those considering a move or purchase, enabling proactive planning and staying ahead of the curve
