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

4 May

Best Time to Purchase a Home is Late Summer

SEATTLE, Might 4, 2017 /PRNewswire/ — Patience takes care of, for home customers. The optimum time to buy a house is late summer, whenever there are probably the most options and frequent cost cuts.

As summer approaches, overall inventory of virginia homes is down 5.3 % from the year ago[i], signaling another competitive house shopping season for purchasers this season. Even in markets which have seen a recently available uptick in the amount of virginia homes, inventory continues to be well below the degrees of five years back.

A new Zillow® analysis[ii] implies that there are more virginia homes by the end of summer season than at any season, giving buyers the best selection. In most main metros, August had a lot more for-selling listings than any month. In Los Angeles, for example, there have been about 8,000 a lot more virginia homes in August than in April. In Seattle, the distinction was about 5,000 listings.

At once, price cuts tend to be more common as house sellers start to be worried about not really selling their homes. In the united states, 15 % of listings in August experienced price reductions. Generally in most large markets, customers are likely to discover a house with a reduced price in either August or September.

The house shopping process could be stressful for buyers. Typically, buyers save money than four months searching for a house, and put in at the very least two provides before buying, based on the 2016 Zillow Group Report on Consumer Housing Trends. Buyers who’ve been unsuccessful so significantly may find better good fortune in the later a few months of the summertime.

“In that competitive housing marketplace, it’s possible for buyers to obtain frustrated if they are investing in multiple provides without success,” mentioned Zillow Chief Economist Dr. Svenja Gudell. “Customers who start their house search in the springtime may be looking months afterwards – but for those that can wait around it out, the finish of summer provides more favorable conditions. Houses that may have already been overpriced previously in the year will have a cost reduction, and the ones listings approved over in previously months may look much better with a brand new perspective.”

Spring traditionally begins the home purchasing season – most brand new listings to enter the market of these months. April specifically had more brand new listings than any 30 days in 2016.  Nevertheless, shopping in spring could be aggressive, and these homes will sell for reduced. Homes listed in past due spring sell quicker and for a $1,500 premium typically, in accordance with Zillow’s Best Time and energy to List analysis. 

Share of Energetic Listings with a cost Cut – 2016

Metropolitan Area

March

April

May

June

July

August

September

October

United Declares

12.6%

12.8%

12.8%

14.3%

14.4%

15.1%

14.3%

13.0%

New York/Northern New Jersey

11.5%

12.2%

12.3%

13.2%

12.3%

11.9%

12.5%

11.2%

Los Angeles-Long Beach-Anaheim, CA

10.8%

10.3%

10.7%

12.6%

13.2%

14.3%

13.5%

11.9%

Chicago, IL

13.2%

15.9%

16.2%

18.6%

18.6%

19.7%

19.9%

18.2%

Dallas-Fort Really worth, TX

10.6%

11.2%

11.6%

13.7%

15.2%

16.4%

15.4%

14.5%

Philadelphia, PA

17.5%

18.5%

18.1%

20.1%

19.3%

19.0%

21.0%

19.7%

Houston, TX

17.1%

16.5%

14.7%

17.2%

19.1%

18.2%

18.2%

17.2%

Washington, DC

13.4%

15.4%

16.3%

17.8%

17.7%

17.1%

17.2%

16.8%

Miami-Fort Lauderdale, FL

14.1%

13.1%

12.1%

12.4%

11.8%

12.1%

11.8%

10.8%

Atlanta, GA

11.6%

12.1%

12.0%

13.3%

14.1%

14.6%

14.0%

13.6%

Boston, MA

10.8%

11.4%

12.5%

14.3%

13.4%

14.2%

14.6%

16.4%

San Francisco, CA

6.8%

7.6%

9.0%

10.3%

11.2%

12.3%

10.9%

10.1%

Detroit, MI

14.9%

13.9%

14.8%

17.5%

18.9%

20.8%

18.9%

17.6%

Riverside, CA

13.8%

12.5%

11.8%

13.0%

13.5%

14.6%

13.6%

12.8%

Phoenix, AZ

21.6%

19.3%

18.7%

18.7%

18.5%

19.4%

19.3%

19.8%

Seattle, WA

6.3%

7.0%

7.7%

9.3%

10.8%

12.1%

11.7%

9.2%

Minneapolis-St Paul, MN

12.8%

13.0%

13.7%

16.4%

17.2%

18.9%

18.6%

17.3%

San Diego, CA

12.9%

12.6%

12.6%

13.7%

14.9%

15.5%

12.7%

8.3%

St. Louis, MO

14.5%

15.3%

15.3%

17.1%

16.9%

17.9%

17.3%

15.7%

Tampa, FL

16.3%

15.6%

14.0%

14.4%

14.1%

14.6%

15.2%

14.6%

Baltimore, MD

16.1%

17.2%

17.7%

19.1%

19.6%

19.2%

19.9%

19.8%

Denver, CO

8.3%

9.3%

10.4%

13.5%

14.2%

15.3%

12.9%

9.1%

Pittsburgh, PA

14.4%

15.1%

15.7%

16.5%

17.4%

17.8%

17.9%

16.3%

Portland, OR

7.2%

8.2%

9.6%

11.4%

13.2%

15.3%

15.2%

13.0%

Charlotte, NC

11.3%

11.5%

11.5%

12.3%

12.9%

13.5%

11.8%

9.6%

Sacramento, CA

8.7%

9.9%

11.0%

12.3%

14.0%

14.6%

13.0%

8.6%

San Antonio, TX

14.3%

15.2%

15.9%

16.8%

19.4%

20.0%

17.9%

16.9%

Orlando, FL

15.9%

15.7%

13.3%

14.2%

14.8%

14.6%

15.1%

14.1%

Cincinnati, OH

13.5%

14.8%

13.7%

16.1%

16.0%

16.7%

15.8%

13.7%

Cleveland, OH

14.1%

13.6%

13.9%

15.9%

15.9%

17.5%

17.0%

16.2%

Kansas Town, MO

11.7%

11.9%

12.0%

14.2%

15.0%

15.9%

15.3%

14.8%

Las Vegas, NV

13.0%

12.7%

12.1%

12.5%

13.6%

16.0%

15.3%

14.2%

Columbus, OH

11.5%

11.3%

11.5%

12.9%

14.4%

15.3%

14.8%

12.9%

Indianapolis, Within

13.0%

12.3%

13.1%

14.9%

16.0%

17.7%

16.9%

16.3%

San Jose, CA

7.7%

8.5%

9.9%

12.0%

11.9%

13.9%

13.1%

12.1%

Austin, TX

12.4%

13.1%

13.7%

15.3%

17.3%

17.0%

16.8%

14.1%

For the entire data, visit Zillow Research: http://www.zillow.com/research/strategy-best-time-to-buy-15066/

Zillow 
Zillow® may be the leading property and rental marketplace focused on empowering consumers with information, inspiration and knowledge round the place they contact home, and linking them with the very best local professionals who is able to help. Furthermore, Zillow functions an industry-top economics and analytics bureau brought by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her group of economists and information analysts produce extensive casing data and analysis covering a lot more than 450 marketplaces at Zillow PROPERTY Research. Zillow furthermore sponsors the quarterly Zillow House Price Expectations Study, which asks a lot more than 100 top economists, property experts and expense and marketplace strategists to predict the road of the Zillow House Value Index on the next five yrs. Launched in 2006, Zillow is possessed and managed by Zillow Team (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is really a registered trademark of Zillow, Inc.

[i] https://www.zillow.com/research/march-2017-market-report-14837/
[ii] This analysis analyzed listings upon Zillow in 2016

SOURCE Zillow

28 Apr

Renters Can Buy Without Increasing Their Monthly Housing Costs

SEATTLE, April 28, 2017 /PRNewswire/ — Rent is so high that a typical renter in the U.S. can purchase a home nearly 50 percent more expensive than the median valued home and keep the same monthly housing budget, according to a new Zillow® analysis.

The median rent in the U.S. is $1,416 per month, which is enough to cover the monthly expenses associated with owning a $289,505 home. The median U.S. home value is $196,500.

Rent is more expensive than ever before. Affordability is a growing concern across the country, and rent requires almost half of the median income in some of the nation’s most expensive markets. A mortgage payment is cheaper than a rental payment on a monthly basis, but saving enough money for the down payment is holding back many renters from crossing over into homeownership.

Zillow analyzed the median rent payment in cities across the country to determine how much home a prospective buyer could afford without spending more on a mortgage than they were currently spending on rent. Zillow factored in all monthly homeownership costs, such as property taxes, maintenance and insurancei. In 37 of the 50 cities Zillow analyzed, renters could buy a home worth more than the median valued home in their city without spending more on monthly housing costs.

Renters paying the median rent in Cleveland and Milwaukee can afford to buy a home more than twice as expensive as the local median home value. In Cleveland, prospective buyers can buy a home valued at $174,194 while keeping all monthly housing costs the same — this represents more than 80 percent of homes currently on the market.

San Francisco is one of the only cities in the country where a monthly rental payment would not cover the costs of owning the median valued home. Renters in San Francisco who want to keep monthly expenses the same would have to buy a home valued at $865,857, representing just 23 percent of homes currently on the market. The median home value in the city of San Francisco is over $1 million.

“Renters hesitant to enter the home buying market for fear of not being able to find an affordable home should be encouraged to discover they may have more options than they thought,” said Zillow Chief Economist Dr. Svenja Gudell. “However, it’s worth noting that many of the more affordable homes for sale may be older, smaller and/or located in less-desirable neighborhoods than they might like. The decision between buying and renting is a financial trade-off between saving more each month on a mortgage payment versus spending more on rent but taking advantage of the location and lifestyle amenities urban renting often offers. Recent slowdowns in rent growth may take some of the edge off for renters saving to become homeowners. This is good news, since saving a down payment, qualifying for a loan and finding a home available at a manageable price remain hurdles for millions of aspiring buyers.”

Nearly half of all buyers are entering the market for the first-time, according to the 2016 Zillow Group Report on Consumer Housing Trends. The majority of all buyers stay within the same city when they move.

City

 Zillow Rent
Index
ii
(ZRI),
March 2017

 Zillow Home
Value Index
iii
(ZHVI), March
2017

 Value of Home
Affordable without
Increasing Monthly
Housing Costs

Share of
Available
Inventory

United States

$1,416

$196,500

$289,505

56.8%

New York, NY

$2,372

$650,000

$484,962

28.7%

Los Angeles, CA

$2,863

$622,900

$585,348

27.6%

Chicago, IL

$1,650

$220,900

$337,347

57.1%

Philadelphia, PA

$1,218

$136,100

$249,023

71.9%

Phoenix, AZ

$1,256

$208,600

$256,793

40.6%

Las Vegas, NV

$1,245

$212,500

$254,544

47.5%

San Diego, CA

$2,503

$558,600

$511,745

31.3%

Dallas, TX

$1,393

$163,200

$284,803

24.7%

San Jose, CA

$3,310

$862,800

$676,739

28.3%

Jacksonville, FL

$1,171

$148,400

$239,414

59.1%

San Francisco, CA

$4,235

$1,167,200

$865,857

22.8%

Austin, TX

$1,848

$316,800

$377,829

33.2%

Detroit, MI

$751

$  39,100

$153,544

92.2%

Columbus, OH

$1,150

$127,400

$235,121

71.2%

Memphis, TN

$851

$  80,200

$173,989

73.5%

Charlotte, NC

$1,309

$181,200

$267,629

37.9%

El Paso, TX

$998

$113,800

$204,044

64.5%

Boston, MA

$2,634

$542,100

$538,529

23.4%

Seattle, WA

$2,540

$638,100

$519,310

26.5%

Baltimore, MD

$1,301

$124,100

$265,993

79.2%

Denver, CO

$2,000

$377,500

$408,906

31.2%

Washington, DC

$2,635

$559,200

$538,733

45.3%

Nashville, TN

$1,550

$223,800

$316,902

38.8%

Milwaukee, WI

$1,138

$105,700

$232,667

86.0%

Tucson, AZ

$1,080

$162,000

$220,809

48.1%

Portland, OR

$1,895

$414,800

$387,438

31.3%

Omaha, NE

$1,308

$151,700

$267,424

49.4%

Albuquerque, NM

$1,205

$187,500

$246,366

56.8%

Fresno, CA

$1,256

$209,600

$256,793

55.6%

Sacramento, CA

$1,543

$293,600

$315,471

60.5%

Mesa, AZ

$1,289

$219,100

$263,540

47.2%

Long Beach, CA

$2,459

$548,400

$502,749

46.7%

Kansas City, MO

$1,042

$119,400

$213,040

53.6%

Virginia Beach, VA

$1,562

$255,900

$319,355

57.2%

Colorado Springs, CO

$1,425

$246,800

$291,345

32.2%

Atlanta, GA

$1,510

$206,800

$308,724

46.6%

Miami, FL

$2,093

$299,900

$427,920

45.4%

Oakland, CA

$2,973

$676,900

$607,838

52.8%

Cleveland, OH

$852

$  56,300

$174,194

81.9%

Honolulu, HI

$2,438

$671,800

$498,456

36.5%

Minneapolis, MN

$1,617

$231,200

$330,600

50.3%

Baton Rouge, LA

$1,342

$155,800

$274,376

60.3%

New Orleans, LA

$1,377

$173,800

$281,531

47.0%

Arlington, TX

$1,465

$176,000

$299,523

57.0%

Raleigh, NC

$1,400

$221,000

$286,234

28.0%

Wichita, KS

$947

$121,000

$193,617

57.7%

Tampa, FL

$1,347

$182,700

$275,398

46.3%

Anaheim, CA

$2,642

$560,200

$540,164

31.7%

Santa Ana, CA

$2,490

$493,900

$509,087

42.0%

Aurora, CO

$1,783

$281,000

$364,539

56.0%

Zillow

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, 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 more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over 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 a registered trademark of Zillow, Inc.

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i This analysis assumes a 20% down payment, and property taxes of 1% of the home value annually, maintenance costs of 1% of the home value annually, and homeowners’ insurance of 0.5% each year.
ii The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow’s database, regardless of whether they are currently listed for rent. It is expressed in dollars. 
iii The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

SOURCE Zillow, Inc.