Nerdwallet on what’s pummeling first-time home buyers

Nerdwallet’s findings are similar to those in a new report from CoreLogic, which found that home buyers were seeing prices appreciate at the fastest pace in more than 45 years, up just over 19% from a year ago in January, with average loan size increasing to a record high of $454,400.

In such market conditions, Renter said that buyers would have to “sacrifice more things on their wish list in order to get under contract”.

She said: “The more buyers are willing to sacrifice on their wish list, the more likely they are to find a home that sort of fits that flexible long list.”

Despite the challenges faced by FTHBs, she said it was still possible to succeed in the market. “We’ve seen the last two years throughout COVID that many first-time buyers have been successful, and part of that is because people have been able to save money,” she said.

“We know that the personal savings rate went up in 2020, and also in 2021 people had access to advance child tax credits and the government stimulus payments. It’s not impossible for first time homebuyers right now. I think a key is just being prepared for what they’re going to face. It’s not going to be a slam dunk.”