According to Zillow, from a recent press release, first-time buyers looking for an affordable home without steep competition will have the best luck in Tampa, Florida. In the study, Zillow ranked 35 of the largest U.S. housing markets based on where first-time buyers should have the most success moving into a home with a strong opportunities for home appreciation.
First-time buyers make up 46 percent of all buyers, and more than 6 in 10 of them are Millennials. The U.S. housing market has cooled recently and inventory is up 1 percent year-over-year, after being down 8.7 percent last year. Zillow goes on to point it that this the first time inventory has been up heading into peak home-shopping season in more than the past five years. Nationwide, there’s also more good news for first-time buyers as inventory of starter homes has popped up – up over 4% this year after being down 13% in 2018. Even with the change, there are still not enough homes for sale to meet buyer demand in most markets around the nation, and therefore the housing market remains competitive.
“The shortage of starter homes across the country is finally starting to ease, and that’s good news for would-be first-time buyers who have been saving up to make the leap into homeownership,” said Skylar Olsen, Zillow’s director of economic research. “Unfortunately, prices of homes in the lower third of the market have risen so much in recent years that for many households’ budgets they no longer qualify as affordable. But markets like Tampa and Las Vegas still provide plenty of bargains.”
10 Best Markets for First-Time Homebuyers
- Tampa, FL
- Las Vegas, NV
- Phoenix, AZ
- Atlanta, GA
- Orlando, FL
- Miami, FL
- Detroit, MI
- Dallas, TX
- Nashville, TN
- Charlotte, NC
Zillow’s list of the best markets for first-time buyers is based on four factors:
- Lower median home value; requiring a smaller down payment
- Strong forecasted home value appreciation, helping buyers’ grow their net worth
- High inventory-to-household ratio, which indicate available housing supply
- High share of listings with a price reductions
So how do you know when you’re ready to buy your first home? I’ve got an answer! It’s that moment when you just can’t stand writing one more check to your landlord so that he or she can pay their mortgage payment. That is the moment you are emotionally ready to buy your own home and start walking the path of a homeowner! If you’re a first-time home buyer and looking for a guide to get your started in the process, please check out my blog post, “Yes, you can: A millennial’s guide to home buying” for more details on getting prepared to step into homeownership!