First-time home buyers’ expectations too high
By Mario Toneguzzi
First-time home buyers are primarily concerned with affordability when choosing a new home, but their expectations may be too high relative to their current financial buying power, says a survey by real estate firm Coldwell Banker.
The survey was conducted among the company’s brokers and sales representatives in markets across North America.
Nearly half of the survey respondents reported that affordability was the top concern for first-time home buyers, but 82% of this group also consider move-in conditions to be very important when searching for homes. Only seven per cent are looking to buy fixer-upper homes that they could buy at a lower price and renovate themselves.
“In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership,” said John Geha, president of Coldwell Banker Canada. “Today, this group has greater home expectations because they have grown up accustomed to their parents’ lifestyles. It is important for first-time home buyers to remember that by considering a fixer-upper for their first home purchase, they can build equity over time and move up and into a second-stage home that better reflects their expectations.”
According to 29% of Coldwell Banker brokers and sales representatives surveyed, first-time home buyers were more concerned with down payments 10 years ago than anything else while only 23% said this is the biggest concern in today’s market.
Some other key findings from the survey include:
- 70% of respondents said first-time home buyers are looking for larger homes than they were 10 years ago;
- 38% said proximity to work is the top priority for first-time home buyers;
- 33% said investment is the top reason for first-time home buyers in making their purchase; and
- 46% said first-time home buyers look at five to 10 homes on average before making their purchase.
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