ORLANDO, Fla. – National New Homeowners Day is celebrated every May 1, highlighting the many advantages to owning a home. It also recognizes the stressful process of budgeting, house-hunting, negotiating, and then closing on your new place.
Work hard, save money, then buy a house – it’s part of the American Dream – but that milestone is becoming more and more out of reach for first-time homebuyers.
Just 32% of Americans who purchased a home in 2023 were first timers, according to a report from the National Assocation of Realtors. That’s below the average of 38%.
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Rose Kemp, president of the Orlando Regional Realtor Assocation, expects those numbers to improve this year and offered tips for someone looking to buy their first home.
First, plan your finances.
Second, hire a realtor.
Third, get pre-approved.
“Many times, a first-time homebuyer who comes to me, for instance, will say, ‘I want to buy a house, and these are the ones I want to see.’ Well, that’s a waste of time,” Kemp said. “You first need to know what you qualify for – what type of home you qualify for – because different properties might not qualify for the loan you’re able to get.”
The Orlando area’s median home price for March was $386,500 – a 164% jump from March of 2019 when the median home price was $235,000.
Even with the daunting numbers, Kemp says millennials and Gen-Z are becoming first-time homebuyers in this market.
“Not just locally, but nationally we’re seeing a really high rate of younger homeowners, people under the age of 30 buying,” she said. “Obtainable housing does exist. You might have to pivot in the area. You might have to get the need and not the want. Your first home is a steppingstone. It’s not a dream property.”
First-time buyers also have exclusive benefits to help with down payment assistance, including opting for an FHA loan, which helps borrowers with lower credit scores and savings finance a home. You can get an FHA loan with a credit score as low as 580 if you have 3.5% of the home’s purchase price to put down.
Florida’s Hometown Heroes housing program, implemented by Gov. Ron DeSantis in 2022, can also provide up to $35,000 in down payment assistance. It depends on your profession and employment status, but the program encourages residents to buy a home in the communities where they work.
“It doesn’t take necessarily a lot of money,” Kemp said. “Yes, you’re going to have to save, and yes, you’re going to have to prepare, but you’re also able to obtain support.”
Central Florida’s inventory, now at a four-month supply, is the highest it’s been since pre-pandemic, caused in large part by higher interest rates.
Kemp says that’s actually been healthy despite how some people feel about the current state of the housing market.
“Those pessimistic remarks, I laugh at them,” Kemp said. “People are continuing to relocate here – a thousand people per week – so as far as housing goes, we don’t see a market that’s going backwards in value.”