Orlando is the greatest Market for First-Time Homebuyers; West Coast Markets Tougher for the First-Time Buyer

12 May

Orlando is the greatest Market for First-Time Homebuyers; West Coast Markets Tougher for the First-Time Buyer

SEATTLE, May 12, 2017 /PRNewswire/ — First-time homebuyers could have better luck in the Southeast if they’re searching for a less expensive home, in accordance with a fresh analysis from Zillow®. Orlando and Tampa top the list because the best markets for first-time buyers, with affordable homes and much more inventory than other markets relatively. Also making the list are San Antonio, Atlanta, and Dallas. These markets are less competitive, year because they commence to accumulate equity and buyers will dsicover strong growth on the next.

Zillow’s set of the very best markets for first-time buyers is founded on five metricsi:

  • Lower median home value for a far more affordable down payment
  • Strong home value forecast being an indicator of creating equity
  • Higher inventory-to-household ratio to fully capture available supply
  • Shorter Breakeven Horizon showing a financial benefit of buying over renting
  • Greater share of listings with price cuts to point a less competitive market

While first-time buyers constitute nearly 1 / 2 of recent buyers, based on the 2016 Zillow Group Report on Consumer Housing Trends, having enough saved for a deposit could possibly be holding first-time buyers back certain markets. A lot more than two-thirds of renters say that saving for a deposit may be the biggest barrier to homeownershipii. In every but three of the 10 best markets for first-time buyers, the median home value is leaner compared to the national median home value, this means they require less overall in advance as a deposit.

The Bay Area and Pacific Northwest have strong job markets, but new buyers could have trouble entering the marketplace because of low inventory and high home prices – buyers in these areas will need to develop a lot more than $70,000 as a deposit. However, those thinking of buying in Florida just need to put about $40,000 down on a median home.

“As millennials reach the normal home buying age, they’re coming into a hardcore housing marketplace with low lots and inventory of competition,” said Zillow Chief Economist Dr. Svenja Gudell. “These markets have significantly more favorable conditions for first-time buyers to become homeowners. More difficult metros aren’t out of grab new buyers, however they should be ready to face a far more competitive buying environment.”

Ten Best Markets for First-Time Homebuyers

1.       Orlando, Fla.
2.       Tampa, Fla.
3.       Indianapolis, Ind.
4.       Las Vegas, Nev.
5.       San Antonio, Texas
6.       Pittsburgh, Pa.
7.       Atlanta, Ga.
8.       Detroit, Mich.
9.       Dallas, Texas
10.     Cleveland, Ohio

A 5 percent deposit in the Bay Area is bigger than a 20 percent deposit in most of the greatest markets for first-time buyers. For buyers who is able to think of a down payment, low inventory and few price cuts make these markets competitive especially.  

First-time buyers will exceed their budget than repeat buyersiii. Zillow Group launched a fresh consumer brand recently, RealEstate.com, targeted at first-time home buyers, that allows them to find and compare homes predicated on an “All-In Monthly Price” which factors in costs like mortgage, property tax and utilities to get a better knowledge of a home’s true cost.  

Metropolitan Area

 Zillow
Home Value
Index
March 2017

Breakeven
Horizon
Q1 2017

 Inventory

 Households

 Annual Forecasted Home Value Appreciation (%)

Share of
Listings with
a Price Cut

Orlando, FL

$202,900

1 year, 11 months

10,344

845,295

3.8

17.4

Tampa, FL

$183,300

1 year, 10 months

14,998

1,166,704

3.2

18.8

Indianapolis, IN

$137,300

1 year, 6 months

7,706

755,100

3.0

13.1

Las Vegas, NV

$219,200

2 years, 1 months

13,012

740,966

4.8

12.0

San Antonio, TX

$158,500

1 year, 11 months

7,444

791,273

3.0

17.2

Pittsburgh, PA

$135,700

1 year, 11 months

10,830

990,355

2.5

14.9

Atlanta, GA

$175,800

1 year, 9 months

28,888

2,028,705

3.1

12.4

Detroit, MI

$138,700

1 year, 7 months

13,919

1,674,251

3.2

12.7

Dallas-Fort Worth, TX

$205,300

1 year, 8 months

16,331

2,479,995

4.4

13.7

Cleveland, OH

$132,400

1 year, 11 months

10,045

849,475

1.8

14.1

Cincinnati, OH

$151,300

1 year, 9 months

6,160

832,607

2.7

14.2

Chicago, IL

$208,400

2 years, 3 months

37,367

3,470,993

2.6

16.7

Kansas City, MO

$155,600

1 year, 8 months

6,616

814,092

2.9

11.6

St. Louis, MO

$149,300

2 years, 4 months

12,373

1,108,303

1.5

15.0

Houston, TX

$174,500

2 years, 4 months

24,960

2,292,992

1.5

17.9

Philadelphia, PA

$216,000

2 years, 7 months

26,597

2,233,752

2.3

17.3

Riverside, CA

$322,700

2 years, 5 months

14,462

1,343,526

3.8

13.4

Charlotte, NC

$170,600

1 year, 10 months

7,793

905,696

3.0

12.0

Miami-Fort Lauderdale, FL

$249,700

2 years, 8 months

46,142

2,077,362

0.6

15.7

Austin, TX

$267,500

2 years, 5 months

6,701

723,914

3.4

15.0

Phoenix, AZ

$232,700

3 years, 0 months

21,607

1,608,722

1.7

20.0

Minneapolis-St Paul, MN

$241,900

2 years, 1 month

9,101

1,354,766

3.5

12.7

Columbus, OH

$161,700

1 year, 9 months

4,858

772,304

3.0

11.2

New York, NY

$411,300

2 years, 6 months

76,798

7,125,065

3.8

11.2

Baltimore, MD

$259,200

2 years, 10 months

11,253

1,037,443

1.8

16.1

Sacramento, CA

$361,000

2 years, 5 months

4,276

809,295

4.7

8.4

Seattle, WA

$426,300

2 years, 3 months

6,181

1,437,222

4.8

5.6

Denver, CO

$362,800

2 years, 5 months

6,130

1,075,919

3.3

9.2

Boston, MA

$419,900

2 years, 9 months

9,903

1,782,655

3.1

10.3

Washington, DC

$382,900

4 years, 6 months

17,478

2,172,310

1.2

13.9

Portland, OR

$359,800

2 years, 11 months

5,306

901,402

2.7

9.8

San Diego, CA

$532,000

4 years, 6 months

5,976

1,113,610

0.9

10.6

Los Angeles-Long Beach-Anaheim, CA

$601,900

4 years, 8 months

17,364

4,315,637

0.8

10.7

San Jose, CA

$986,000

5 years, 1 month

1,596

651,352

0.9

7.0

San Francisco, CA

$843,200

4 years, 11 months

4,155

1,689,907

0.6

6.2

Zillow

Zillow® may be the leading real rental and estate marketplace focused on empowering consumers with data, inspiration and knowledge round the accepted place they call home, and connecting them with the very best local professionals who is able to help. Furthermore, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering a lot more than 450 markets at Zillow PROPERTY Research. Zillow sponsors the quarterly zillow Home Price Expectations Survey also, which asks a lot more than 100 leading economists, property experts and investment and market strategists to predict the road of the Zillow Home Value Index on the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

i The First-time Home Buyer Index, which range from 0 to 10, captures a balance of five metrics: low median home values for an inexpensive down payment, a solid home value forecast to point an excellent start to growing equity, a more substantial inventory-to-household ratio to fully capture available supply, a larger share of listings with price cuts to surface less competitive buying experiences, and a faster breakeven to show a solid incentive to get over rent. These five metrics are ordered and metros are scored on a scale from 0 to 10 along a uniform distribution. These five scores are then averaged and the common re-scaled to range between 0 to 10.

iihttps://www.zillow.com/research/down-payment-hurdle-zhar-14790/

iiihttps://www.zillow.com/research/zillow-group-report-2016-13279/#buyercharacter

SOURCE Zillow

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