Markets in Tampa and Las Vegas still have plenty of bargains which are ideal for first-time buyers, shows new research conducted by Zillow property firm.
On the Zillow’s list which ranks 35 largest housing markets based on where first time buyers should have the most success moving into a home with a strong forecasted appreciation, Tampa has come out as the best place followed by Las Vegas.
What’s is interesting is that first-time buyers make up 46% of all buyers, and more than six in 10 of them are Millennials, it’s presented by Zillow’s research.
There were some changes in figures for first-time buyers but the market remains competitive, even do that inventory of less expensive starter homes has turned around far more, up 4.1% after being down 12.9% last year. Even with this change, there still are not enough homes for sale to meet buyer demand.
‘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 adding that 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,’ Skylar pointed out saying that first time buyers are naturally disadvantaged compared with other buyers because they don’t have capital from a previous home sale to help fund a down payment or keep up with bidding wars.
In the Zillow’s report is stated that younger first-time buyers have had less time to save for a down payment than most repeat buyers. Millennials go into the process knowing that, and help mitigate those difficulties by working harder than previous generations of home buyers, for example, they take more home tours, attend more open houses, do more research about which homes to look at and contact more agents.
First time home buyers, especially younger once are more likely to go over their budgets to nab their first home. But those buying in the top markets in Zillow’s analysis should have a better chance of staying within budget to buy a home they love, as market trends show they are more likely to require smaller down payments and to have had prices cut.
The best and most challenging markets in the USA for a 1st time home buyers
Tampa is the best place, by Zillow’s report, for first time home buyers followed by Las Vegas. Other metropoles’ that are suitable for first-time buyers are Phoenix, Atlanta, Orlando, Miami, Detroit, Dallas, Nashville and Charlotte in North Carolina. The most challenging market for first-time buyers is in San Francisco, followed by Seattle, Washington DC, Los Angeles, Sacramento, Minneapolis, Denver, San Diego, San Jose, and Boston.