An overarching look at domestic post-pandemic housing trends.
People tend to view buying a home as a way to jumpstart the ascent into the rest of their adult lives. For some of the people, the path toward purchasing their first home begins following the completion of their undergraduate degree.
Unfortunately, it is not as simple as trading your diploma for a deed following graduation. Before you start to look at homes, contact realtors, and book showings, there is work to be done.
The Federal Trade Commission reports that one of the most significant things for any prospective first time buyer to do is to check, manage and upkeep their credit score. Low credit means a higher interest rate on any homeowner loans they may take out. And with the current market as unstable as it is, even a few percentage points can make all the difference.
But because it can be hard to build your credit score following an expensive college education, many have opted to work for about a decade following college before purchasing a home. This has caused the average age of first time homeowners to creep up to 34 years old, which the National Association of Realtors reports is the oldest buying age since 1981.
So with the future uncertain because of the pandemic, there has been a home-buying frenzy and a home-selling freeze. This means that right now, high housing prices combined with low mortgage rates means that selling your house is incredibly easy, as illustrated by the Housing Affordability Index.
However, assuming someone is looking for another property to purchase once selling their home, it can be difficult to find anything that is reasonably priced. Houses are quick to be snatched up by those that can afford the exorbitant prices, and even then, they are often overpaying due to the bloody bidding wars that result.
This means that first timers trying to tackle housing purchases are likely to be swamped by the intricacies of post-pandemic properties. Two people who have experienced this market and all of its confusion first-hand are Muncie homeowners Sophie Richau, and her wife, Jessica.
Sophie, 35, was born in Richmond, Ind. and raised in Greens Fork, Ind., while Jessica, 27, hails from South Carolina. After tying the knot on June 4, 2021, both women decided to tackle the next step in life — buying a home of their own.
“We got a letter from our landlord saying she was raising our rent 50 bucks, and we were just like, ‘Well, screw this,’” recalls Sophie, as she reflects on the couple’s motivation for moving. Unfortunately, the transition to their new place was not as smooth as they hoped.
With the market the way it is, it was expected, yet still discouraging, that they would hit a few roadblocks along the way.
“We’re about three weeks behind where we thought we were going to be. We thought we’d be closed and into the place by now. The last email we got from our lender said that we were going back into underwriting now,” Sophie says.
Underwriting refers to the process through which the buyer’s lender verifies a person’s eligibility for a mortgage loan. The full mortgage loan process can take up to 30-45 days, from underwriting to the final step of closing, according to mortgage banker Craig Berry.
This means that it could very well be a while before the Richaus are finally moved in.
However, the unexpected hitch in their plans failed to derail them. As they move forward with the rest of their lives, they look forward to entertaining, relaxing, and spending time together.
“[My ideal] night would be Sophie coming home to a dinner I’ve made and maybe going out and walking because we’re in downtown,” Jessica says. “Maybe do some work on a hobby or start our own tiny business like selling dried plants or clippings or jewelry.”
Though our present is still occupied by the pandemic, the United States is slowly but surely moving toward the future. And for many like the Richaus, that future involves a new house— One that may be filled with new memories, but is yet still teeming with the same people. After all, there is no place like home.
Sources: The Federal Trade Commission, National Association of Realtors, Housing Affordability Index, Craig Berry
Images: Provided by Sophie Richau
Featured Image: Provided by Sophie Richau
