Skip to main content

First-Time Homebuyer VS. Repeat Homebuyer Fears

Navi Persaud
Oct 29, 2021
Black and white photo of a woman looking nervous and scared.

Both first-time and repeat homebuyers have their fair share of fears as they navigate the process, however, these fears aren't alike.

KEY TAKEAWAYS
  • 40.4% of first-time homebuyers in the study are afraid there might be better options out there than the homes they are looking at.
  • 36.8% of first-time homebuyers are afraid of not being able to afford their mortgage.
  • 41.6% of repeat homebuyers are afraid of rising home prices.
  • 41.6% of repeat homebuyers are afraid that inventory will continue to decline.

A recent study from Ojo Labs took a look at the different fears that first-time and repeat homebuyers have. Both sides are afraid of the homebuying process, though the fears they ranked the highest and ones that affect the process differ, according to Patrick Kearns, director of storytelling for Ojo Labs.

“A survey of 200 homebuyers conducted between July 2020 and July 2021 found that, on average, buyers reported a fear level of 51.2 on a scale from 0-100,” according to the report. “First-time buyers skewed slightly higher on that same scale, reporting a fear level of 52.9, while repeat buyers reported a fear level of 50.7.”

First-time homebuyers have more financial-related fears than their repeating counterparts. They mostly feared not being able to afford a mortgage and taking a look at their own finances, according to the report. 

“Despite financial-related fears dominating the top five, it was actually the fear that there are better options out there that was the top-rated fear for first-time homebuyers,” according to Kearns. 

Meanwhile, the top fears for repeat homebuyers fall under continuously rising home prices and an inventory shortage that is continuing to trouble the housing industry and driving up competition among buyers who are desperate to find a home. 

“Repeat buyers let their top fears have a bigger impact on their timelines, however, with a fear of rising home prices delaying their timeline by an average 11.1 days,” said Kearns in his report. “A fear that inventory would continue to decline delayed timelines, while a fear that there would be better options out there delayed timelines by 28.5 days, nearly a month—a stark contrast from first-time homebuyers.”

Published
Oct 29, 2021
Buyer-Seller Stalemate Increases Housing Market Supply

The market may not stay calm for very long, though.

Analysis and Data
Dec 09, 2022
Mortgage Credit Availability Increased In November

The Mortgage Credit Availability Index increased, indicating loosening credit.

Analysis and Data
Dec 09, 2022
Mortgage Rates Fall For 4th Straight Week

The 4-week decline is the largest since 2008.

Analysis and Data
Dec 09, 2022
HouseCanary: Housing Market Declining Sharply

Elevated interest rates paired with housing market seasonality has driven declines in new inventory and listings.

Analysis and Data
Dec 09, 2022
Ginnie Mae Has Doubled The Proportion Of VA Loans In Its Portfolio

In report to Congress, agency says VA loans have risen to 45% of its MBS portfolio over 10 years.

Regulation and Compliance
Dec 08, 2022
More Home Builders Offered Price Cuts, Incentives In November

NAHB says the percentage offering deals remains below 2008 levels.

Analysis and Data
Dec 07, 2022