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Home prices have completely stabilized and the shortage in housing supply is fast becoming a thing of past. Great news then for potential homebuyers who have come right into the mix! Only time will tell whether we are nearing the tail-end of the present cycle but from the looks of it, the market is certainly becoming a lot more receptive for new buyers; not only in terms of median values but also in terms of asking price quoted by sellers.
Starter homes were definitely cramped in the recent past but the situation has eased a fair bit and this means that the first-time-home-buyers who had been energetically saving for the home-ownership leap get a great opportunity to do so.
“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,” Skylar Olsen, Zillow’s director of economic research, said in a press release. “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.”
It has been heartening to see first-time home buyers getting this active in 2018. They posted their best numbers since Subprime and it is no mean feat that they have been at least twice as active (40% chose urban setting) as Repeat buyers in the urban areas. 43% of them have shown a liking for suburbs while 17% have opted for rural areas.
With mortgage rates nose-diving, mortgage applications from First-time Home Buyers get one more reason to soar. Already, the total loan application volume and refinance index have got a boost.
Considering metrics like the high number of listings with price-cut, anticipated appreciation of home value, low median home value, and a high ratio of inventory-to-household, here is a list of 10 housing markets that look like a great bet for the First Time Home Buyers (source – Zillow).
|Rank||Housing Market||Median Home Value||Anticipated appreciation (2020)||Listing % with price cut||Inventory-to-Household ratio|
|8||Charlotte, North Carolina||$206,200||6.1%||16.4%||1.2%|
|5||Miami Fort-Lauderdale, Florida||$283,800||5%||18.6%||2.8%|
|2||Las Vegas, Nevada||$277,900||8%||23.9%||1.6%|