As homeownership among first-time buyers continues to decline, the real estate market in 2023 may present a difficult situation for those who are ready to purchase their first homes. According to the recent analysis, nearly all of the homes listed for sale in 2023 were unaffordable for many consumers.
This alarming statistic is particularly concerning for young adults who are starting to consider taking the plunge into the housing market. With rising prices continuing to outpace wage growth, and credit availability still tight, it’s increasingly difficult to secure a suitable mortgage.
As the cost of purchasing a home continues to climb, buyers should look for homes further away from city centres in order to purchase something within their budget. Suburban homes will likely be more affordable in the near future, making them a better option for those looking to buy at reasonable prices.
Fortunately, the housing market isn’t entirely out of reach for everyone. Those who are able to secure a low down payment loan (particularly those with good credit) may still have a chance of purchasing a home that’s within their budget. Additionally, even if a home isn’t affordable right now, buyers should keep their eyes open for potential future deals as market conditions continue to change.
It’s clear that the housing market in 2023 is becoming highly inaccessible to many first-time homebuyers. With prices soaring and credit availability still tight, it will take some careful planning and a willingness to explore less conventional routes in order to find something that fits within their spending budget. Those who are ready to purchase their first homes should be prepared for an uphill battle in the coming year.