Millions of Americans who bought new homes during the pandemic have enjoyed them and the benefits of historically low interest rates. But for those who missed out, the homebuying process has become a drag.
A new survey from Clever Real Estate found more than half of Americans who recently bought a home feel that they overpaid for their home and have struggled financially since.
One thousand Americans who purchased a home in 2022 or 2023 were surveyed on April 12 and 13, 2023. Respondents answered up to 21 questions regarding their recent home purchase, previous home sales, and views on buying and selling homes.
Almost half of respondents exceeded their budget and 58% believe they overpaid. Considering that, it’s no surprise that one in four say their overall finances have been impacted negatively since purchasing their home.
And the worst part: more than half say their happiness has not improved since buying a home. In fact, almost all (92%) compromised on their priorities and have regrets about their decision. That includes accepting loan terms with higher interest rates than they wanted.
Altogether, 36% of respondents said they weren’t at all satisfied with their homebuying experience.
Experts recommend taking things slow and holding firm on priorities when home shopping, even if it means delaying your purchase. Buyers who rush and compromise on their needs are more likely to regret their purchase and end up in hairy financial circumstances.
“They’re like, you know what, I don’t love this home, I don’t love my neighborhood. Maybe this is a little more expensive than I thought it would be, so a lot of people are looking at this like maybe this wasn’t a smart move,” Tricia Turner, CEO of Tricia Turner Property Group, told Fox about the trend.
Lenders can help home shoppers make informed choices by emphasizing upfront research on what they value most, like neighborhoods, amenities, and school districts. Thoroughly talking through their finances ensures they understand the costs associated with homeownership and can comfortably afford their new life.
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