2022 looks to be a prime year for millennials and first-time homebuyers to move away from renting and enter the real estate market to purchase a home. 2021 was a tough year for new buyers, with competition incredibly steep. With mortgage rates still low, incomes high, and the price of rents reaching unbelievable prices in many markets around the country, it is no wonder why many are looking to purchase their first home in 2022.
The National Association of Realtors reports that a wave of first-time homebuyers are already actively engaging with the market in preparation for a 2022 purchase. According to their report, 40% of those looking to purchase their first home next year are already watching listings in their prime neighborhoods, and according to Realtor.com 15% have already gotten pre-approved for a mortgage. It seems that first-time buyers are learning from the competition that 2021 held, everything from bidding wars to properties moving just days after listing, and are preparing themselves to jump on properties in 2022. In fact, 22% of first-time homebuyers surveyed by Realtor.com say they are willing to make an offer on a property less than 48 hours after first viewing it. 61% of those surveyed are looking for homes priced under $350,000, and 25% are willing and able to put 20% or more as a down payment.
What are the priorities of this pool of first-time buyers? Some of the answers may surprise you. A common response has always been the size of the home. However, the National Association of Realtors reports that square footage actually ranks in the middle of the list for these millennial first-time buyers. Only 15% responded that square footage was their number one priority. So what was the most popular answer as their top priority? More than 35% of all respondents said that a large backyard was their #1 priority, making it the top priority of those who were surveyed. Other top priorities included updated kitchens and bathrooms, having a garage, and being in a quiet location.
With more millennials than ever ready to enter the real estate market as first-time buyers, the face of real estate may change in the coming year. With different priorities than previous generations, markets are sure to see a shift. The market for homes for sale in the Fl Keys is perfect for those first-time buyers looking for a high quality of life!