We're In A Buyers Market Lower mortgage rates haven’t caused an uptick in demand just…
Head South For Affordable Home Prices
Millennials looking for good job prospects and affordable housing should consider heading to the South. According to a new ranking of the best cities for Millennial homebuyers, four of the top five spots are located in the Southern half of the country.
The Best Cities For Millennial Homebuyers
Fort Worth, Texas is in the No. 1 spot for the most promising spot for Millennials. The growing Texas city boasts job growth of 2.7%, and though home prices have jumped 9.8% in the last year in the area, it’s still more affordable than most parts of the country. Median-priced homes in the area requires 27% of a Millennial’s income versus the 31% nationally.
Other cities that make great choices for Millennial homebuyers are Jacksonville, Florida; Oklahoma City; Charlotte-Concord-Gastonia, North Carolina; and Grand Rapids-Wyoming, Michigan.
Of the five, Jacksonville has seen the most job growth in the last year at 3%. Oklahoma City has experienced the smallest jump in home prices (4.6% year over year.)
Time Is Of The Essence
It’s important for buyers to understand that some markets remain reasonably affordable by historic norms, but this may not last much longer since the consensus forecast is for prices and interest rates to continue increasing. The good news is there are many cities with vibrant job markets and homes that are more affordable than the nation as a whole.
Though few areas are expected to have lower home prices in the coming years, West Virginia and Texas hold the biggest odds. At the metro level, there’s a 22% chance prices will drop in Houston and an 18% chance they’ll dip in Denver as well.
Still, holding out hope for price drops — or even just to save more for a down payment — is risky.
One factor that needlessly hinders some potential first-time buyers is the incorrect idea that you need a 20 percent down payment when, in reality, most first-time homebuyers put down between 3% and 10%. Unfortunately, delaying a purchase decision in the current market will likely mean paying more later.
*This article does not represent legal interpretation or advice. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. Seattle Mortgage Brokers, LLC NMLS: LO# 305371 MB# 761615