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Millennials are having a harder time buying a home as competitive market increases

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Posted at 8:40 PM, Jun 14, 2021
and last updated 2021-06-14 21:40:33-04

WACO, TX — The housing market is skyrocketing and those ready to buy their first home are out of luck.

A recent survey suggests millennials are having home buyer regrets whether it be the price was too high, they weren't prepared for extra costs after purchasing the home or they're bid outbid altogether.

Destini Stead is a first-time home buyer and 31 years old. It took her four months to finally be able to find a home, she was worried she'd have to settle for what she didn't want.

"It's very overwhelming at times and other times I just wanted to give up," Stead said.

As prices started to increase, the housing market spiked and homes that might be worthless were being listed way out of her budget.

"Right now, with it being so competitive I was really worried if I was going to even be able to find something that was decent enough to call a home," Stead said.

26% of millennials between 25 and 31 say the cost of owning a home was too high, starting with the price and then including renovations you might want, buyers were forking over thousands more than budgeted.

"Having enough money put aside for not only down payments, in the beginning, to buy your house and then also to fix things up the way you like it," Stead said.

Temple Realtor Quinton Locklin says with interest rates so low houses are being bought fast, with some offers coming in before a listing even goes live. So there's an added pressure to stay competitive.

"It takes time to accrue a lot of cash sometimes and I think to be competitive in this market right now cash is king," Locklin said.

For many, they'll put out dozens of offers but little hope goes with it after outbidding and outbid.

"We have some buyers that we've written 10 and 12 offers and still haven't landed one yet. We're bringing 20-25,000 over asking and still haven't landed one yet," Locklin said.

It's important to not rush and settle on a home as buyer's remorse can easily set in that way, Locklin makes sure his clients are ready for the house hunting hussle but in a way that they'll be happy with their purchase.

To stay ahead of the game it's vital to have to know your financial status and get pre-qualified before placing a bid. Having your ducks in a row can put you at the front of the pack.

For Stead, she didn't want to rush but was getting vary antsy when it came to not finding a home she liked. Thankfully her prayers were answered after 4 months of looking.

"I just left it in God's hands and was like if this is the house for me this is the house for me," Stead said.

Stead says it's also important to not settle with your Realtor, it's okay to change if you feel like it's not a good fit.

"Realtor is key and so is the lender and usually they work hand in hand so find someone that has time for you, that to me makes a world of difference," Stead said.