Zillow recently confirmed what most of us in the industry already know: San Antonio is a great city for first-time homebuyers looking for a more affordable home. According to a new analysis from Zillow®, Orlando and Tampa top the list as the best markets for first-time buyers, with affordable homes and relatively more inventory than other markets. San Antonio and Dallas were right behind, ranking 5th and 9th, respectively.
Zillow’s list of the best markets for first-time buyers is based on five key metrics
⋅Lower median home value for a more affordable down payment
⋅Strong home value forecast as an indicator of building equity
⋅Higher inventory-to-household ratio to capture available supply
⋅Shorter Breakeven Horizon to show a financial advantage of buying over renting
⋅Greater share of listings with price cuts to indicate a less competitive market
In all but three of the 10 best markets for first-time buyers, the median home value is lower than the national median home value, which means they require less money up front as a down payment–especially important for first-time buyers who may not have accumulated as much savings.
While San Antonio is a sweet spot for first-time homeowners, it’s not exactly a well-kept secret. I am seeing more situations, especially at the more affordable end of the market, where multiple offers are in play. And with the hottest months for homesales upon us, buyers need to prepare to compete. “Prospective buyers looking to move this summer should prepare by seeking preapproval from a lender, knowing their budget and getting with a REALTOR® to discuss their housing priorities,” according to Angela Shields, SABOR’s President and CEO. “They also need to be ready to make a decision quickly.”
Ten Best Markets for First-Time Homebuyers
1. Orlando, Fla.
2. Tampa, Fla.
3. Indianapolis, Ind.
4. Las Vegas, Nev.
5. San Antonio, Texas
6. Pittsburgh, Pa.
7. Atlanta, Ga.
8. Detroit, Mich.
9. Dallas, Texas
10. Cleveland, Ohio