So after a very hot 18 month on the US housing market we can clearly see that many young couples are suffering from buyers remorse.
It is not really that uncommon that first time home buyers are feeling sad after a year in their new home.
In the old days couples usually saved up for the down payment for a period of 3-5 years and they looked for a long time in many different areas, before buying a home, they came very well prepared.
Now in 2021 when people are buying homes UNSEEN we are living in very different times.
And the buyers remorse has started to set in more than ever for the young couples who bought a house unseen during the Covid-19 pandemic.
It has been like a gold rush in the housing market and some markets are up by more than 200% in a 2 year period, which us just Crazy”, on any real-estate market.
And the sad thing in the areas where house prices has doubled or more is that the young locals can not afford to buy locally any longer when people from out of state are buying up all the inventory.
The good news for the locals is that within 3 years time a lot of these houses will drop down a lot in price when the out of towners will move on to bigger and better things.
But getting back to buyers remorse on your first house is pretty interesting when looking at it from an outside perspective.
A lot of people had a budget of 600.000 USD when starting out and after a fierce bidding war the price ended up at 795.000 USD.
So now suddenly most couples over spent and are so called house poor, a lot of their income goes towards the mortgage and property taxes in the states that have them.
Not to mention the big dirty secret in all house deals the so called necessary repairs that needs to be done almost every year.
We usually estimate for our clients that are buying their first home that they will spend at least 500 Dollars a month on maintenance and repairs on a 200sqf house, for as long as they live there.
What makes couples regret their home buy is often that when you overspend on a home, you have no money left to do anything-else and the home starts to feel like a prison after awhile.
This is here is the main reason why you should think about an area for a long time and follow the comps, and never ever overspend on your first home.
It is very easy to get carried away in the hype, but it almost always comes back to bite you in your rear end.
So take your time when you are buying that first home, and we have a great PDF-FILE on it here in the link below on what first time home buyers should now prior to buying.https://mrlifeadvise.com/product/buying-a-houseeverything-you-need-to-know-as-a-first-time-buyer-of-a-home/
Also always check out the comps in the area you are interested in buying in, by using Zillow for instance see the link here https://www.zillow.com/sellerlanding/pricingtool
Take care out there.
Mrlifeadvise team.
