In a competitive real estate market, sometimes people rush into a deal that doesn’t fit their budget or suit their needs – and for millennials this year – they’re suffering from what experts say is a major case of buyer’s remorse.
Nicole Bachaud, an economic data analyst for Zillow says that buyer's remorse in a market that has home prices rising, bidding wars & low supply overall - isn't surprising.
“We do hear a lot of those anecdotal stories about buyer's remorse happening.”
A new Bankrate survey says 64% of millennials have regrets after buying a home. Many say the biggest problems they face include feeling financially unprepared for the costs of home ownership, overpaying on the sales prices and disliking their size of the home.
“With the urgency in the market – a lot of people are moving really quickly – and you maybe didn’t consider all the factors of the house that they’re looking to purchase, Bachaud said, "but we’re not going to see prices coming down at all – we’re going to continue to see these prices increase over the year and next coming years.”
For those who are feeling the sting of homeownership - there is one major plus if you can stick it out.
“Nationally we’re looking at almost 15% appreciation between may 2021 and may 2022," Bachaud noted. She said for those who did make the big decision to buy, the equity that you're building may be worth sticking out some of the kinks.
"As prices are continuing to increase, people are building equity and that’s always a great thing to consider...the fact that if you do choose to move in the coming years...you’ve built that equity instead of staying in the rental market and not having that opportunity.”
Bachaud says the regret that millennials are feeling may impact the market, but right now it’s too soon to tell.
“Maybe we’ll see more moves that wouldn’t have happened if people had found the right house in the first place...we don’t know what that’s gonna look like a year to three to five years down the road.”
Bachaud said virtual showings & online 360 house tours may have contributed to some of those decisions for people who moved too fast on a house.
However, tech savvy buying, like "Zillow-surfing" isn't going anywhere, even as COVID-19 restrictions lift across the country.