Forty-eight percent of millennial first-time buyers who took Redfin's survey saved money directly from paychecks for their down payment on a home, the most commonly cited method. It's followed by the ability to save extra money during the coronavirus pandemic (31%), working a second job (27%), cash gifts from family (20%), and selling stock investments (19%).
While many workers were furloughed or laid off due to the pandemic, people who held onto their jobs have been able to save more money than usual over the last year as they spent less on things like eating out, travel and in-person events. The
The pandemic effect: One-third of all homebuyers are buying sooner than expected; another one-third are buying later
Thirty-seven percent of all homebuyer respondents (regardless of age) are purchasing a home later than originally planned because of the pandemic and 32% are buying a home sooner than originally planned.
There are many reasons why the pandemic is encouraging some people to race toward buying a home and others to pump the brakes. The popularity of remote work is fueling demand for spacious homes, and it's also motivating people to move to entirely different areas. But rising prices and a home-supply shortage are among the factors causing would-be buyers to pause their home search.
"Roughly half of my clients are people moving to the
Homebuyer preferences: Private outdoor space and plenty of living space
Nineteen percent of homebuyers said private outdoor space is the most important feature in their choice of home, the most common response. It's followed closely by the desire for plenty of living space (18%) and privacy within the home from neighbors or passersby (17%).
Homebuyer concerns: Rising prices and other financial considerations top the list
Although homebuyers are searching for space, they're also worried about prices going up.
Rising home prices were the top concern among house hunters, with 27% of homebuyer respondents who plan to buy in the next year citing it as a worry. It's followed by concerns about being able to find a home they love at a price they can afford, with 25% of respondents selecting that option. Home prices were up 22% year over year in April, reaching a record high of
Homebuyers are also concerned about other financial issues, with roughly 20% of respondents selecting each of the following concerns: Mortgage rates going up, ability to secure a loan, not having enough money for a down payment and concerns about the economy.
"After months of home prices rising dramatically, buyers are well aware that homes are more expensive now than they were a year ago or six months ago," said Redfin Chief Economist
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Redfin Journalist Services: Angela Cherry, 913-638-8249, email@example.com