Today’s homebuying market remains in the hands of the sellers, with competition still hot and prices fluctuating. There are a few states that are slightly more affordable than others, Zillow found in a recent study. Cities in Texas and Florida make up most of Zillow’s top 10 best places for homebuyers. The two states make up seven of the 10 metros listed. These areas have slightly less competition, particularly thanks to new-build homes.
Prospective homebuyers are having an easier time in states like Florida and Texas, but in other Southern and Midwestern states, homeowners are struggling to keep up with high-cost mortgage payments, ATTOM found in its Home Equity & Underwater Report. Nearly 45.8% of properties with mortgages were considered equity-rich in the first quarter, which has declined from 46.1% in the last quarter of 2023.
The last few years have seen less and less existing home inventory, largely due to rising interest rates. This is because high interest rates can push homeowners to stay in their homes, especially if they are locked into a lower rate. Many owners aren’t willing to trade the low interest rate they got during the pandemic for one near 7%. This rate-lock effect has created a void in the housing market. An estimated 1.
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