FinancingMarket Direction

Homebuyers Are Underestimating Purchase Costs

Buyers today are spending more than expected on home purchases. To some extent, this is an effect of rising prices. Beyond that, experience was found to play a significant part. Forty percent of millennials are going over budget, compared to 34% of Generation X members, and only 19% of baby boomers, the generation with most experience.

  • 40% of millennials went over budget by an average of $24,545;
  • 34% of Generation X members went over budget by an average of $13,996;
  • 19% of baby boomers went over budget by an average of $8,024

Clearly, experience pays in real dollars. If you’re a first time home buyer, remember that asking for someone experienced for advice can be money in the bank.


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