This spring, the marketplace for first-time homebuyers is similar to last year’s, only (as the saying goes) ‘more so.’ Earlier in the month, CNBC broadcast a number of statistics that made the case. In their phrase, for first-timers, buying a home is “tougher than ever.” Even so, for Costa Mesa house-hunters, it’s a half-empty glass that is also half-full.
The CNBC report concentrated on a major segment of first-time buyers: those born between 1981 and 1996 (the millennials). Given that the typical first-time homebuyer household has an income in the $75,000 - $100,000 range (approximately what mortgage lenders require), it’s possible to determine how many such households there are. In 2019, there was one listing for every 24 of those households. The ‘glass half empty’ news is that by 2021, inventories had plummeted to just one listing for every 65 households. Since there are so many fewer homes available, it’s not surprising that you would expect a reprise of what was frequently reported last year: multiple bids on homes. It could begin to look like the half-full glass was on its way to looking more like a quarter-full.
But there is another factor that can reinforce a ‘glass-half-full’ viewpoint for some first-timers. The 2-year pandemic put such a crimp on consumer spending that many have succeeded in saving unprecedented amounts of cash. Per CNBC, that has become “one of the top ways recent first-time homebuyers were able to save for their down payments.”
Even so, the half-filled glasses might soon encounter some rapid evaporation. With reports of U.S. rents rising an average of 14% across the U.S., the incentive remains high for renters to buy as soon as practical. The near-certainty of rising mortgage interest rates adds another stimulus. It could well become a replay of the widespread multiple-offer scenario.
The spring Costa Mesa busy season typically produces a fast-paced market—which is also one which calls for energetic representation by an experienced Costa Mesa Realtor®. We hope you’ll call if you are ready to explore today’s market!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at firstname.lastname@example.org
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