Many prospective home buyers still don’t think they can afford a down payment just yet, but they’re becoming hopeful. Lenders are more willing to loan to first-time buyers, and the sheer demand is, perhaps artificially, inflating morale. Buyers are aware they need to make sacrifices, though. Over half are willing to take up a second job or cut back on how often they eat out, which is considerably more expensive than cooking at home. A third or more believe they can make a down payment if they live with their parents in the meantime, shop less for clothing, or give up some vacation time.
Current homeowners, who often have a better grasp on the market than first-time buyers, aren’t so sure about the market, though. They are still more confident than buyers, but most think the prices are too high to sell now because they would be overpaying for their next home. Currently 53% even think another economic crisis may be impending, up 16% from two years ago.
While state-wide and national statistics often differ dramatically from our experience here in the beach cities of SoCal, these tepid figures signal a slowdown in the real estate market overall.