5 best – and worst cities for first-time homebuyers
Here is some good news for first-time homebuyers in the Houston area. In an article published March 17, 2016, reporter Catey Hill lists Houston as being one of the best top five cities in the nation for first-time homebuyers. Cities ranked by affordability, mortgage availability & stability of its housing market. We could not agree more and encourage buyers to come out and visit any of our Houston area communities to see for yourself why Houston is an amazing city to buy your new home in. Excerpts from her article are below:
5 worst housing markets for first-time buyers
First-time homebuyers will have better luck in some spots than others.
New homebuyers are far better off purchasing a home in many towns in the middle of the country, and far worse off in many cities in California, according to an analysis released this week by financial website SmartAsset.com. The site examined data on housing affordability for people living in the area (as measured by the ratio of median household income over five years to ownership costs over five years, including closing costs, mortgage payments, insurance and taxes), ease of getting a mortgage and the stability of the housing markets in cities with populations of 300,000 or more.
Oklahoma City tops the list, thanks largely to how affordable homes are in the area for those who work there (the median home is only about $125,000, according to Zillow) and how stable the housing market is. Tulsa, Okla. is second on the list; even though it has fewer mortgage lenders than Oklahoma City, it is even more affordable for residents with the median home costing just over $100,000. Indianapolis, Pittsburgh and Houston round out the top five. (Added bonus: all of these cities have unemployment rates below the national average.)
Meanwhile, a number of cities in California are the worst for first-time homebuyers, thanks in part to the fact that they are unaffordable for many in the area and the markets tend to be volatile. Indeed, the seven worst cities on this list — Los Angeles, Santa Ana, Anaheim, Riverside, Stockton, Long Beach and Oakland — are all in California.
Other rankings of best and worst spots for first-time home buyers come to similar conclusions. All the best cities for first-time buyers chosen by personal finance site WalletHub were in the middle of the country particularly Texas, while two California towns (Richmond and Compton) were the worst. The site looked at affordability, the health of the real estate market and city livability.To be sure, many first-time buyers love the perks that these California cities have to offer including warm weather and close proximity to the ocean.
Catey Hill covers personal finance and travel for MarketWatch in New York.