Challenges Faced by Today's Homebuyer

Mortgage and Lending with EPiQ Lending NMLS 1936984



Homebuyers have always found the housing market to be a bit of a challenge. But today’s market presents more obstacles than most.

Demand and prices are high, inventory remains at record lows and the economy is still uncertain. Financial struggles have sidelined many would-be buyers. And these problems could continue to persist into the foreseeable future.

What can you do to help?

Understand the Challenges Homebuyers Face

  • High Prices

    Over the past 12 to 24 months, home prices have surged. In August, home appreciation was up 17.7% year over year. But prices appear to be cooling. Month-to-month appreciation entering August slowed to just 1.75% (down from 1.97% the previous month).

    This is good news for first-time buyers, many of whom have been priced out of major markets. In Q2 2021, average list prices in America’s 50 largest cities were 5.5 times the local median income of first-time buyers.

  • Low Inventory

    Builders continue to be hampered by labor and supply shortages. Many would-be sellers have been deterred by the pandemic. Others have opted to rent their properties rather than sell. And senior homeowners want to stay put instead of downsizing/moving to a senior living community.

  • Student Loan Debt

    According to the NAR, 60% of non-homeowning millennials say student debt is delaying their ability to make a purchase. Such debt is preventing 47% of all non-homeowning student debt holders from saving for a downpayment.

    Forty-five percent of non-homeowning student debt holders believe their debt-to-income ratio would prevent them from qualifying for a mortgage.

  • Competition (All-Cash Offers)

    With inventory low and demand high, competition is to be expected. But bidding wars are hard to win when you’re up against corporations and investors who can afford to make all-cash offers. Even with ample savings and preapproved financing, it’s hard for the typical buyer to compete.

How You Can Help

Educate your buyers. Set expectations, adjust priorities and encourage expanded search parameters. Lean on your robust professional network. For example, a trusted lender can help financially challenged buyers explore low-to-no deposit mortgage options.

For more helpful industry news and tips, reach out today.

Posted by


Ricky Khamis
National Business Development Manager
D: 480.270.8687  |  M: 602.758.7425  |  F: 480.339.1615
275 E. Rivulon Blvd. Suite 300 Gilbert AZ   85297
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Comments (2)

Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post Ricky!  It's so important to be factual and educate buyers so that they have reasonable expectations.  That's the biggest part of what we do in real estate, managing expectations.  Home buyers should find an agent they are comfortable working with who explains the ups and downs of real estate.  All the best and Happy Holidays!  

Happy Holidays!

Dec 22, 2021 09:23 AM
Jim Paulson
Progressive Realty (Boise Idaho) - Boise, ID

Totally concur about setting expectations.  When meeting with a new potential buyer, I pull the MLS statistics for home like they are looking for to show them the list price to sales price ratios.  When most of our homes are selling at or above list price with multiple offers in the first few days, they see it is the market influencing my suggestion to make a strong offer to start with.  If they make an offer that ends up with seven other offers, I tell them that six of those people will probably be competing against us on the next similar home here in Boise, Idaho.

Dec 22, 2021 11:27 AM