The share of active house hunters has fallen sharply in the aftermath of a mid-pandemic homebuying boom characterized by bidding wars and steep price gains, but a number of affordable metros could offer new buyers a starting point in the search for their first homes. Markets like Wichita, KS offer an inventory to buyer ratio of 22 to 1 with price reductions in 22% of all listings, Zillow reports.
Similarly, in Toledo, OH, homeowners are required to dish out just 26% of their incomes to afford the typical mortgage payment, and 15 years are needed to save for a 10% down payment (at 2.4% savings rate), the lowest on Zillow’s winter/spring 2023 list.
Zillow’s winter/spring 2023 list of the best markets for first-time buyers is based on four metrics: mortgage affordability, rent affordability, the inventory-to-buyer ratio which indicates available supply, and the share of listings with a price cut.
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.
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