Why first-time home buyers should look at older houses: Expert Q&A

Abstract

Should first-time buyers avoid newly built homes? Even before mortgage rates shot up past 5%, first-time home buyers were facing property values growing at a rapid pace amid an extreme inventory crunch. We recently spoke with the Kiavi CEO and former CFO of Ocwen on what makes older homes superior to new construction for first-time buyers. Why should first-time home buyers target older homes? There's a lot you can do by investing in a home built in the 70s. Just from a fundamental affordability perspective, there's a benefit for consumers. The cost of a renovated home against the price of a new build is about $40,000 cheaper on average. Can investing in existing homes help boost inventory? There's a massive amount of aged homes in this country. What advice would you give first-time home buyers in the current housing market? It's important to remain patient. New build vs. existing home: The bottom line The housing market's laundry list of affordability challenges makes it tough on home buyers.