Houston ranked as one of the best markets for first-time homebuyers

by Chase Conner

First-time homebuyers, who make up 42 percent of all buyers, might just have luck on their side without much competition in Houston, according to a Zillow’s 2018 Best Markets for First-Time Buyers Analysis. The analysis ranked the 35 largest U.S. housing markets based on where first-time buyers had the best chance to find an affordable home with the least amount of competition and a strong home value appreciation. 

Houston was marked no. 3 with an inventory of 26,275 homes in the market and a median home value of $186,800. The breakeven horizon —the point at which it becomes financially advantageous to buy rather than rent — was 1 year and 10 months.

Currently, the market saw a decrease of 17.1 percent for inventory of the least expensive homes annually in January 2017. This put nearly a quarter of home sales above the listed price and created a stronger disadvantage for first-time buyers in a low-inventory market. 

“More and more millennials are reaching the point in their lives where they are ready to buy a home, but they are entering a highly competitive housing market that has been plagued by low inventory, especially among entry-level homes,” said Zillow Senior Economist Aaron Terrazas.

Houston’s market requires a smaller down payment and saw a 16.7 percent share of listings with price cuts, which can be assumed as a easier transaction for first-time buyers and a less competitive market. Buyers can expect an easier acquisition in searching for a home in Tampa and Indianapolis. 

Top 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

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