Why are so many first-time buyers second-guessing their big move?
New data released by Clever Real Estate reveals that nearly three-quarters of first-time homebuyers, 73%, regret their home purchases. This figure overshadows the 65% of all homebuyers who express similar sentiments, according to the report.
The findings indicate that financial concerns are at the forefront of these regrets. Approximately one in five buyers, 20%, expressed remorse over securing high interest rates, while 13% wished they had not overspent on their homes.
Despite targeting a median purchase price of $310,000—well below the current US median of $416,900—a significant portion of first-time buyers, 51%, report feeling financially overwhelmed. This compares to 25% of repeat buyers who feel similarly burdened. Overall, 30% of recent homebuyers feel financially in over their heads.
The report also highlights that many buyers made compromises during their home search. About 82% of homebuyers reported making concessions, with 61% indicating that a strong foundation was not a crucial factor and 63% stating the same about a new roof. This may contribute to the 28% of buyers who experienced second thoughts after their offers were accepted.
The financial strain continues post-purchase for many. Nearly one in four recent buyers, 23%, stated their finances have worsened since buying a home, outweighing the 19% who reported an improvement. While 62% of buyers emphasized the importance of finding an affordable home and 21% received price reductions, 38% still exceeded their initial budget, and 37% believe they overpaid. Furthermore, 38% of buyers, including 43% of first-timers, accepted higher interest rates than preferred to secure a mortgage.
The sacrifices extend into daily life, with 40% of recent homeowners making major lifestyle changes to manage expenses, and 21% taking on additional debt. Even so, 16% have struggled to make timely mortgage payments.
The home-buying process itself proved more challenging than expected for 28% of buyers, a sentiment shared by 36% of first-time buyers. A major contributing factor, cited by 34%, was the shortage of homes across US markets.
Despite the widespread regrets, a substantial 94% of buyers would alter something about their home-buying experience if given the chance. However, 44% ultimately report being happier overall since purchasing their home.
What are your thoughts on the latest findings? Share your insights below.
