For the past two years, first-time homebuyers have trailed behind in a competitive for-sale market characterized by fast-rising prices and surging mortgage rates, but a few affordable metros could still offer purchasing opportunities. The best markets for first-time buyers in winter/spring 2023 will be determined by mortgage and rent affordability, available supply, and the share of listings with a price cut, Zillow reports.
Already, some metros are showing promising signs of cost relief in a cooling housing market. Wichita, KS tops Zillow’s list of the best markets for first-timers with a 22 to 1 inventory to buyer ratio and price reductions in 22% of regional listings. Following closely behind is Toledo, OH, where the typical rent payment accounts for an average 29% of tenants’ income and 23% of listings are currently seeing price cuts.
Markets with relatively more affordable rent, less competition and higher inventory in the for-sale market in 2023 will provide the best opportunity for home buyers – especially those looking to acquire their first home.
Lower rent shortens the time it takes to save for a down payment. A higher number of active for-sale listings relative to the number of active shoppers means more options and higher bargaining power for potential home buyers in those markets.
Advertisement
Related Stories
Housing Markets
Which US Housing Markets Are the Hottest?
Denver once again tops the list of the hottest MSAs overall on the U.S. News Housing Market Index, exhibiting a mix of strengths including a positive ratio of building permits to job growth
Affordability
The 5 Most and 5 Least Affordable US Housing Markets
The top five least affordable major markets are all in California, while Lansing, Mich., leads the pack of affordable metros
Housing Markets
Metros Seeing the Biggest Jumps in Home Inventory
While inventory levels are still down compared with historical data, it's reassuring to see recent inventory increases indicating a more positive trend