15 Best States for First-Time Homebuyers
In 2023, numerous prospective homebuyers, particularly first-time purchasers, found themselves discouraged due to escalating home prices, which made affordability a significant concern. Consequently, many postponed their plans to buy a home. Meanwhile, existing homeowners opted to retain their properties, partly due to the prospect of facing higher interest rates on new purchases. Mortgage rates remained elevated and hesitant. Moreover, the available inventory of homes proved insufficient to meet the increasing consumer demand. However, the somber housing market is now undergoing a favorable transformation in 2024.
According to Yahoo, the current housing stock is still behind what is required. However, a positive development in this regard is that builders have begun to see improved conditions for future construction. During the month of January, the builder sentiment increased from 37 to 44. New single-family building permits have also experienced a rise.
On January 25, The New York Times reported that the inventory of existing houses has been even less. This has driven new construction of homes to fulfill the demand. The construction and purchase of new houses went up in the second half of 2023. As of now, new homes account for 30% of the overall housing market. This new home market is relatively bright and offers options, especially to those who wish to buy for the first time. Another issue pertaining to newly constructed houses is that they tend to be more expensive than existing houses. In order to address this problem and cater to the needs of buyers who are budget-conscious, homebuilders are shrinking room sizes and altering floor plans.
