One of the most prudent moves a potential homebuyer can make to is to get pre-approved for a loan.
CARLOS
Nearly half — 46% — of millennial homebuyers are looking to buy their forever home says a new report from Bank of America (NYSE: BAC).
“They may not be able to realize that vision, however,” said Kevin O’Toole, Market Leader of Preferred Lending for Central Texas at BoA. The current market is forcing millennials, who comprise the majority of today’s prospective homebuyers, to settle for starter homes on which they can build equity.
Potential buyers are going to great lengths to buy a home, including getting second jobs, increasing their budgets, or waiting to buy so they can save more money, according to the report, which surveyed 2,000 adults nationwide who currently own a home or plan to buy one in the future.
The report shows national demand for single family homes vastly outpacing supply, which has lead to soaring prices and hot bidding for existing homes. Two-thirds of homebuyers overall said they are putting in an offer on a home within three days of viewing.
San Antonio has not been spared, particularly in the most coveted parts of the city.
There are other realities of the current housing market.
“They’re called ‘pocket listings’,” said O’Toole, referring to homes which are sold without ever actually hitting the market. “But it’s rare that an agent has access to these kinds of properties.”
Conventional homebuyers also have to compete against cash buyers.
“You’re coming up against potential cash offers,” said O’Toole.
Buyers can take advantage of other tools they are afforded to increase their likelihood of closing on the home of their choice.
“We counsel our clients to be connected: stay attentive to inventory, market information, and how to get through loan process,” said O’Toole.
He also mentioned that buyers can apply for public and private grants for which they may be eligible. The City of San Antonio offers grants for first-time homebuyers, first responders, and others.
Source: https://www.bizjournals.com/sanantonio/news/2022/05/03/millennials-changing-forever-home-starter-home-boa.html