Where First-time Homebuyers Catch a Break

First-time buyers looking for an affordable home without much competition will have the best luck in Tampa, Florida, according to real estate and rental marketplace Zillow’s 2018 Best Markets for First-Time Buyers Analysis.

Zillow ranked the 35 largest U.S. housing markets based on where first-time buyers have the best chance to find an affordable home with little buyer competition and strong forecasted home value appreciation.

First-time buyers make up 42 percent of all buyers, according to the 2017 Zillow Group Report on Consumer Housing Trendsi.

The U.S. housing market is competitive for all buyers, as there are not enough homes for sale to meet today’s strong buyer demand.

In January, inventory of the least expensive homes was down 17.1 percent annually, compared to a 9.7 percent decrease for all homes. In 2017, nearly a quarter of home sales were above the listed price.

However, there is some hope.

Ten Best Markets for First-Time Homebuyers

  1. Tampa, FL
  2. Indianapolis, IN
  3. Houston, TX
  4. Orlando, FL
  5. San Antonio, TX
  6. Saint Louis, MO
  7. Philadelphia, PA
  8. Atlanta, GA
  9. Las Vegas, NV
  10. Dallas, TX

Zillow’s list of the best markets for first-time buyers is based on five metrics:

  • Low median home value that requires a smaller down payment.
  • Strong forecasted home value appreciation.
  • High inventory-to-household ratio, to indicate available supply.
  • Short Breakeven Horizon, which is the time it takes for buying to be financially advantageous compared to renting.
  • High share of listings with a price cut.

Find out more at zillow.com.

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