Buying a Home: Then and Now – How the Process Has Changed Over 25 Years

Let’s take a journey back to the late 1990s—a time of dial-up internet, Blockbuster movie nights, and a very different real estate landscape. If you’ve ever wondered how buying a home today compares to 25 years ago, you’re not alone. The process, the numbers, and even the emotions have shifted in fascinating ways. Let’s break down the biggest changes, from interest rates to down payments, and everything in between.

Interest Rates: A Rollercoaster Ride 🎢

In the late 1990s, mortgage interest rates hovered around 7-8%. While that may seem high compared to the historically low rates of a few years ago (which dipped below 4%), it’s not far off from some recent spikes. Today’s rates have bounced back up, often landing between 6-8%. The key difference? Buyers in the ‘90s saw these rates as normal, while today’s buyers, after years of rock-bottom rates, feel the pinch more acutely.

Down Payments: Then vs. Now

Twenty-five years ago, the standard down payment was often 20%. It was almost a rite of passage: save, save, save, and then put down a hefty chunk of change. Fast forward to today, and the average down payment is closer to 6-7%. There are more loan options and programs for first-time buyers, making homeownership more accessible, but also sometimes stretching buyers financially.

Speed of Sales: From Leisurely to Lightning Fast ⚡

Back in the day, homes could linger on the market for months. Buyers had the luxury of multiple visits, second thoughts, and even negotiations over shag carpeting. Today, in many North American markets, homes sell within days—sometimes hours. Bidding wars and above-asking offers are common, fueled by low inventory and high demand. The pace can feel dizzying, especially for first-timers.  In our local market - it's even wilder - some houses sell on the Private Network - and others take a while to find their perfect buyer.  Part of the beauty of living in an area with such diverse and unique housing stock!

The House Hunt: Paper to Pixels

Remember newspaper listings and Sunday open houses? In the ‘90s, your search was limited to what your agent could show you or what you spotted in print. Today, buyers can browse thousands of listings online, take virtual tours, and even submit offers digitally. Technology has made the process more convenient, but also more competitive.

Other Notable Differences

• Credit Requirements: Lending standards have tightened and loosened over the years, but today’s buyers often face more scrutiny, especially after the 2008 financial crisis.
• Home Prices: Median home prices have soared, outpacing wage growth in many areas. What bought you a spacious home in 1999 might only get you a condo today.
• Demographics: Today’s buyers are more diverse and often older, as many millennials delayed buying due to student loans or economic uncertainty.

Looking Back, Moving Forward

While the process of buying a home has become faster and more high-tech, the dream of homeownership remains the same. Whether you’re nostalgic for the ‘90s or embracing today’s fast-paced market, understanding these shifts can help you navigate your own homebuying journey with confidence.

Get the Guidance you need for Today's Market!

In the end, what's important is that you have trusted professionals who can help you navigate TODAY'S market - both as a buyer and seller.  We are here to help!  Not only would we love to help you, we can also connect you with other outstanding professionals, from lenders to attorneys to contractors, to make the process as smooth as possible!