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However, a significant number of these homeowners are experiencing buyers remorse.
According to a recent report byReal Estate Witch, 90% of millennials regret their first home purchase.
This regret has been exacerbated by various factors, particularly for those who bought homes before the pandemic.
Heres why more millennials regret buying homes pre-pandemic.
Before the pandemic, interest rates were already on the rise, making mortgages more expensive.
Inadequate Financial Preparation
Many millennials entered the housing market with less financial preparation compared to previous generations.
High levels of student debt, coupled with stagnant wages, left little room for substantial down payments.
This approach has led to higher monthly payments and greater overall costs, contributing to their regret.
Poor Timing and Market Conditions
The timing of their purchases also played a significant role.
Those who bought homes pre-pandemic often faced higher prices and competitive bidding wars due to the limited supply.
Millennials who bought earlier missed out on these lower rates, further fueling their regret.
Location and Neighborhood Issues
Another major source of regret is the location of their homes.
About 27% of millennials regretted choosing a bad location, while 26% regretted having bad neighbors.
Over time, these compromises have led to dissatisfaction.
Unanticipated Costs and Maintenance
Homeownership comes with numerous hidden costs that many first-time buyers underestimate.
From maintenance and repairs to property taxes and insurance, these expenses can add up quickly.
The report highlighted that 11% of millennials regretted paying too much for home upkeep.
Many who bought homes pre-pandemic did not anticipate their future needs accurately.
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