Amid cooling inflation and rising housing costs, many first-time homebuyers feel more certain about their financial situations, according to a recent study from TD Bank, America’s Most Convenient Bank®. TD’s First-Time Homebuyer Pulse found that 54% of respondents indicate they are now better off financially than they were two years ago. And while buyers’ perception of the economy and affordability continue to draw concern, rising rent may be driving homeownership interest.
TD Bank surveyed 1,007 Americans planning to buy their first home in 2023 to learn more about their path to purchasing a home, as well as their thoughts on preparedness for the process as housing costs fluctuate nationwide.
First-Time Homebuyers Maintain Optimistic Outlook, Amid Market Concerns
Among those looking to purchase a home for the first time in 2023, 39% believe now is a good time to buy. Many who have begun their process are also showing signs of preparedness with 48% starting to save for a down payment. Additionally, more than eight in ten (85%) respondents indicated buying a home was a good long-term investment.
Though first-time buyers are looking more optimistically toward the homebuying season, reservations remain, with a majority (69%) concerned about the economy and 64% concerned about their ability to afford a home with rising interest rates. That worry persists for six in ten respondents when considering the ability to afford a home combined with other expenses.
“Although typically overlooked when beginning the search for a home, meeting with a lender can help first-time buyers better understand the additional costs and opportunities associated with homeownership,” said Steve Kaminski, Head of U.S. Residential Lending at TD Bank. “Against the backdrop of higher rates, continued inflation, and low housing inventory, it is especially important for consumers to speak with mortgage professionals and realtors early in the process to create a well-adjusted budget and…
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