As a first-time home buyer, or even an experienced home buyer, there is a lot to consider in finding your perfect home. This rings even more true for millennials, now the largest group of home buyers exploring unchartered real estate territory. With millennials shifting from renters to buyers at an all-time high, 3.1 million are now reaching the typical age to enter the real estate market. This sets the stage for a tighter starter-home market in southern Arizona and across the nation, and continued growth is expected at a rapid rate through this year and into 2020.
Although the current housing market is cooling off a bit nationally, in southern Arizona, we continue to see steady upwards growth. In fact, with the total sales volume up 12.06% compared to the same time last year, we are seeing some of the highest numbers in decades. So, what does this mean for buyers, and especially millennials? It means a decreased supply of starter homes. Couple this with increasing starter home values, and significant challenges are eminent for first-time home buyers. These factors create competition, resulting in affordability challenges caused by rising prices due to increased demand.
These market conditions make an informed real estate purchase important now more than ever. With current active home listings well below 3,000 in southern Arizona, we are seeing the lowest active inventory in the past several years. For these reasons and more, a REALTOR® can prove to be a valuable partner, helping first-time home buyers to avoid common real estate pitfalls.
One of the most important ways a REALTOR® can support a smart home purchase is by providing sound guidance on how much a buyer can truly afford. Odds are, a first-time home buyer will need a loan to finance a home purchase. A REALTOR® can help a buyer decide on a home purchase budget by discussing income and other variables, determining the type of loan to consider, and advising on a home purchase range in which the buyer should evaluate to begin their search.
A REALTOR® can also help first-time home buyers ask the right questions, ensuring they’ve done their due diligence. Once an offer has been accepted, many first-time home buyers are eager to move in and enjoy their purchase right away. However, a REALTOR® can advise on buyer protections by adding contingencies to the contract, covering the buyer if something goes awry. This could include problems with the home inspection, financing fall outs, and even appraisal challenges. Knowing the right protections to put in place will safeguard your investment and valuable financial resources.
Speaking of valuable financial resources, did you know there are tremendous tax benefits that come with purchasing your first home? From potential tax credits, tax breaks, interest deductions and more, it’s crucial to understand what’s available to you, so you don’t leave money on the table. A REALTOR® can help explain how you can maximize these benefits, advising on the appropriate resources to help make the most of your home purchase.