These Are the Top 5 Reasons Buyers Are Delaying Home Purchases

Putting off homeownership? You're in good company.

Many people dream of owning a home and make buying one a priority. But buying a home is a huge undertaking, especially in today's market. If you're on the fence about wanting to buy, to the point where you keep delaying that decision, there's certainly nothing wrong with that.

In a recent survey by Rocket Homes, many first-time home buyers expressed hesitation about purchasing a home. Here are the top five reasons why those considering a first-time home within the past two years have delayed that process.

1. Needing funds for a down payment

Home values have reached record highs in recent months, and as a result, buyers have been forced to come up with larger down payments to secure mortgages. But for some buyers, a higher down payment just hasn't been doable -- not at a time when inflation has been driving up the general cost of living. If you don't have enough money for a down payment on a home, it absolutely pays to hold off on buying.

Some mortgage lenders will accept less than a 20% down payment at closing. Many will, in fact. But if you don't put down 20% on a conventional mortgage, you'll get stuck paying private mortgage insurance, which can make homeownership more expensive.

2. High home prices

Limited inventory and competitive mortgage rates have led to a surge in home buyer demand. As such, home values are through the roof right now, and they've been high for more than a year. It's easy to understand why so many buyers are delaying homeownership these days.

If you're not sure you can comfortably swing a home given today's prices, you should hold off on buying. If you stretch your budget too much, you could end up falling behind on other bills and hurting your finances in the process.

3. The desire to avoid debt

Mortgage debt is generally considered a healthy type to have. In spite of that, some people are uncomfortable with the idea of owing money. If you're in that camp, you may want to put your home buying plans on hold. This especially holds true if you're already carrying another loan or credit card balance you want to pay off first.

4. Uncertainty over where to live

The pandemic has uprooted a lot of people and caused them to rethink their housing needs and situations. If you're not sure where you want to settle down, then it pays to delay buying a home until you figure it out.

This especially holds true if you have the option to work remotely on a long-term basis. In that case, it pays to take some time to research different metro areas and figure out what's the best fit for you.

5. Uncertainty over buying a home in the first place

Owning a home is a huge financial undertaking. It can also be time-consuming. When you own property, you're required to maintain it, and that may be something you're not sure you're up for. If that's the case, you may want to delay buying until you're more confident that homeownership is really the best choice for you.

A lot of people push themselves to buy a home as soon as they can. But actually, there's plenty to be gained by waiting. In today's housing market, holding off on buying could mean giving home values time to cool off and drop down to more affordable levels. Just as importantly, delaying your home purchase could make it possible to approach that decision with more confidence. That alone makes waiting a smart bet.