Everyone knows dating can be stressful, as the journey to find love can cause some of the best and worst moments in a person’s life. Recent homebuyers say the housing market has become so competitive that 59% considered the process of buying a new home even more stressful.
In fact, a recent survey from online Real Estate company Redin found that more than half of recent buyers also ranked the homebuying process more stressful than potty training a child, planning a wedding or getting into college.
“Getting ghosted by your date is stressful, but purchasing a home in today’s market comes with its own unique set of anxieties,” said Redfin Chief Economist Daryl Fairweather. “Buyers are increasingly ghosting sellers as housing costs climb, and high mortgage rates are prompting many homeowners to stay put instead of selling, meaning house hunters have a record low number of homes to swipe right on.”
Realtors in Connecticut said the state’s market is not immune to that stress.
David Gallitto, Connecticut Realtors Association’s 2022 president, said buying a home was always stressful.
It’s the biggest purchase most people will make, and new buyers have to plan to move while navigating a stressful process that can be filled with uncertainty right until the end.
The housing market has been especially competitive since the pandemic, though, causing the median home price nationwide to skyrocket from $280,700 in March 2020 to $406,700 as of August. That’s a jump of 44.9%.
“The current conditions in the real estate market are making it more difficult for buyers due to the limited number of homes available and the rise in interest rates,” Gallitto said.
Ryan Hence, a real estate agent with William Raveis, said buyers are still able to get multiple offers for their home. That’s driving up prices and leaving some home buyers questioning if they’ll find a home.
“It’s pushing some buyers out of the market just simply because of affordability,” he said. “And those ones still in there trying to find a house, they’re competing against multiple offers.”
He also said it’s causing some buyers to waive inspections and other aspects of the home buying process to appease sellers.
According to Redfin’s survey, including 1,000 people who bought a home in the prior 12 months, 61% said buying a home was more stressful than potty training a child.
The survey also found 58% found it more stressful than getting into college 51% said the process was worse than getting into college.
Redfin said the responses depended greatly on the people answering: for example, Gen Z and Millennial buyers typically found homebuying more stressful than Baby Boomers.
Hence believes that’s partly because many younger buyers feel overwhelmed when buying their first home, whereas experienced buyers have a better idea of what to expect.
He also said owners have advantages when trying to buy their next home, though, because they can leverage equity thanks to rapid home price growth. They also have credit profiles that make it easier to qualify for conventional loans, something many sellers prefer.
Realtors and real estate agents believe the only real solution is boosting housing inventory so that buyers can regain some leverage in the market.
Hence said a significant drop in mortgage rates could help inventory because some longtime owners may feel now is the time to cash on their equity.
Before last year’s rate surge, the average rate for a 30-year mortgage reached 5% since May of 2010, according to Freddie Mac. The current average is 7.49%.
Hence said that bump in housing stock would likely be offset by a similar jump in demand, though, keeping the market competitive.
“If you lower rates right now, there’s potential to have another price surge because once the rates lower, more people come in and try to start buying again,” he said.
In the end, professionals suggest buyers educate themselves on the market as a way to reduce stress.
“Realtors can help guide buyers through the process, regardless of the market conditions,” Gallitto said.
Hence agreed, saying buyers need to know what the process entails and have an understanding of what their personal tolerance is for stress and risk.