Nearly 75 Percent of First-time Homebuyers are Optimistic about the Current Housing Market, TD Bank Survey Finds

Amid lingering concerns around affordability and interest rates, most first-time homebuyers still feel optimistic about the housing market in 2024 and are ready to spend, according to an annual study from TD Bank, America's Most Convenient Bank.

With home prices temporarily edging downward following their all-time high in 2023, according to the January Case-Shiller Index, TD's Annual First-Time Homebuyer Pulse found that of those looking to buy a home in the next year, nearly three in four (74%) respondents felt optimistic about the housing market. And nearly all (97%) have already started taking initial steps in the homebuying process.

TD Bank surveyed 1,009 Americans planning to buy their first home in 2024 to gather insights around their feelings on the current housing market, as well as their thoughts on overall preparedness regarding home inventory and the costs associated with purchasing a home.

Economic Conditions Still Pose Concerns but Buyers Remain Positive

Perhaps with a renewed hope for lower rates coming mid-2024, 40% of respondents agreed that right now is a good time to buy a home. Additionally, more than three quarters (78%) of first-time homebuyers felt their personal financial situations are in stable condition in 2024.

“Based on the industry consensus, homebuyers can potentially look forward to rates easing a bit, but the financial steps needed to purchase a home should remain top of mind, with one of the most important being to speak with a mortgage professional early in the process,” said Steve Kaminski, Head of U.S. Residential Lending at TD Bank. “Rates are central to affordability for many, but with a moderate decline in rates forecasted, buyers will still have to contend with low home supply and relatively high home prices. An experienced lender can help consumers navigate the interest rate and housing environment by providing mortgage options that can support their budget and best fit their financial situation.”

Though some lowering of interest rates in 2024 seems imminent, nearly two-thirds (63%) of first-time homebuyers cited rates as a concern about their ability to afford a home in today’s market. This is down just 1% from last year, revealing that despite optimism, interest rates remain a top concern for those looking to purchase a home.

This optimism has sprung into action with nearly all respondents (97%) having already taken steps in the homebuying process. About half (47%) have started saving for a down payment and nearly two in five respondents (38%) have established a budget for their home purchase.