I was recently featured on the show “Real Estate Today” and we discussed the buyers position in this year’s housing market. The topic of the show “Buy That House” answered the question, “what do buyers need to do to be successful in the competitive Spring market?” Realtor.com just released a survey that studied home buyers in 146 markets to determine which areas were the most popular. As the consumer housing specialist, I provided valuable insight based upon the findings from our report. The survey studied focused on 5 key areas:
5 FACTORS THAT MAKE AN AREA GREAT FOR FIRST TIME HOME BUYERS
1- How often an area was searched- Ranking of the search online.
2- Median List Price- What price point was appealing?
3- Change of Inventory- How many houses go on the market from year to year?
4- Age of Inventory- How long are the homes on the market?
5- Unemployment Rate– Is it high, normal, low?
Based upon these factors, we chose the top 10 Metropolitian Statistical Areas (MSA’S) and noticed that each neighborhood shared commonalities that acted as incentives for first time homebuyers. Not only do these neighborhoods have low unemployment rates compared to the national average, certain characteristics makes these the perfect place for first time homebuyer to settle.
FIRST TIME HOMEBUYER INCENTIVES
1- AFFORDABLE LISTED PRICE– For first time homebuyers, it is really important to consider things like down downpayment, and the monthly mortgage. Since this is likely the biggest purchase they have ever made, it is best to use caution and act carefully.
2- LOCATION– The saying “location, location, location,” has never been more true. First time homebuyers are very serious about buying in areas that have value so that if they were to sell, they would be able to make some type of profit.
3- SUPPLY AND INVENTORY
4- REASONALBE TIME ON THE MARKET– Homes that sell fast show that the market is very competitive which can result in crazy bid wars and multiple offer situations. Those houses that have been on the market for a decent amount of time are more likely to sell at a reasonable price.
The median home price in these top 10 cities were all below $250,000, making it very affordable and possible for any first time homebuyers wanting to qualify for a loan. Of the 10 cities chosen the top 3 where:
TOP 3 CITIES
3- PHILADELPHIA, PENNSYLVANIA & NEW JERSEY
- $174,000 median list price
- 141 days on market — This greatly decreases the possibility of encountering crazy bid wars.
2- TAMPA BAY, ST PETERBURG CLEAR WATER, FLORIDA
- 169,000 Median List Price
- 21,000 Homes for sale — healthy amount of inventory
1– PITTSBURG PENNSYLVANIA
- $135,000 MEDIAN HOME PRICE, VERY LOW UNEMPLOYMENT RATE 5.7% BELOW NATIONAL AVERAGE
- %5.7 unemployment rate which is far below the national average.
Would it be worth moving to one of these areas if you are a first time homebuyer? Absolutely! All these neighborhoods have great values and have something unique to offer for anyone looking to make that big purchase. To see houses for sale in these areas simply visit www.realtor.com. For the full interview click here. For any additional real estate questions contact me anytime at:
LESLIE PIPER
(415)990-4929
- What Cities are the Best for First Time Home Buyers? - April 7, 2014
- Scared to Sell Your Home? 4 Signs You’re Ready - February 24, 2014
- Do You Have a Home Crush? - February 14, 2014
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