A recent survey by TD Bank has shown that first-time buyers are willing to make sacrifices in order to try to save for a down payment on a home. They’ll consider giving up many items we might consider to be essential such as cable TV or the Internet or phones in order to save money.
Apparently potential home buyers are willing to make the sacrifices because they would prefer to be able to save up a sizable down payment to put towards their property purchase. Out of those surveyed by TD Bank, more than two thirds said they’d prefer to put a down payment of at least a 20% on their home purchase. The bank surveyed more than 1,000 people who didn’t currently own a home but who intended to purchase a property of their own within the next five years.
According to the article in realtormag.org, the number of first-time buyers is increasing. Figures from the National Association of REALTORS® shows that their share of the property market increased to 32% in May, the highest share seen since September 2012. Just a year ago first-time buyers accounted for 27% of all home buyers.
The bank survey also showed that approximately 62% of potential first-time buyers were planning to purchase a property within the next two years. Amongst millennials this figure is even higher, rising to 67%. Experts feel this is encouraging news, particularly as first-time buyers have been cautious during the recent housing recovery. Now it looks as if they are gaining increasing confidence in the economy which is prompting them to look towards buying property during the next few years.
When it comes to actually purchasing a home, more than two thirds of those surveyed want to buy a property that is ready to move into while just one third would like to buy something that requires fixing up. Some 43% would like to purchase their first home in a suburban area outside the city while just 20% want a property that is in a big city or metro area. When it comes down to desirable communities, most of those surveyed were interested in having an energy efficient or smart home, as well as something that has been attractively designed with a backyard or pool.
The biggest barrier to buying a property is still having to save for a sizable down payment and reducing debt levels. Finding something that is actually affordable is also a problem, as 22% of people who were looking to purchase their first home were unable to find something within their price range.