On the heels of Ten-X ranking Tampa the #1 U.S. market for first-time homebuyers in Spring 2017, Zillow also ranked Tampa one of the top markets for first-time homebuyers in 2017.
These rankings are important information for real estate investors because first-time homebuyers are good prospects for their properties. Real estate investors often purchase a wholesale property at a discounted price, rehab it, and flip it for a profit.
Tampa and Orlando took the top two spots in Zillow’s report, primarily based on the number of affordable homes on the market compared to other markets in the United States.
The five factors used by Zillow to determine the best markets for first-time homebuyers were:
- 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.
“As Millennials reach the typical home buying age, they are coming into a tough housing market with low inventory and lots of competition,” Zillow’s Chief Economist Svenja Gudell said in the report. “These markets have more favorable conditions for first-time buyers to become homeowners. More challenging metros aren’t out of reach for new buyers, but they should be prepared to face a more competitive buying environment.”
The top 10 markets for first-time homebuyers according to Zillow are:
- Orlando, FL
- Tampa, FL
- Indianapolis, IN
- Las Vegas, NV
- San Antonio, TX
- Pittsburgh, PA
- Atlanta, GA
- Detroit, MI
- Dallas, TX
- Cleveland, OH
To help first-time homebuyers, and anyone wanting to know the all-in monthly price of owning a home, Zillow Group recently launched RealEstate.com. Homebuyers can search for a home, and view individual properties with information that includes an all-in monthly price factoring in costs such as the mortgage, property tax, and utilities.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve local and international clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.