A recent report released by Realtor.com found the best markets for first-time homebuyers to invest in for 2014. The report highlights the ripest markets for new home investors and sheds light on several market dynamics that shape buyer interest and affordability.
To compile the list of the best housing markets for first-time homebuyers, Realtor.com analyzed several factors, such as price, market popularity, inventory, time on market and employment.
Other housing indicators included search rank, year-over-year change in stock of homes, median list prices, median age of a house and unemployment rates across 146 major areas. The data were then compared against the needs and goals of a typical first-time homebuyer.
Realtor.com's February 2014 data, as well as data from the U.S. Bureau of Labor Statistics, were used.
"As we head into home-buying season, these markets show favorable conditions for first-time buyers, which is encouraging because these buyers are crucial to the housing market," Steve Berkowitz, CEO of Move Inc., operator of Realtor.com, said in a statement.
He added: "First-time buyers have a widespread impact on the local housing markets. In transitioning from renters to owners, new buyers pay property taxes and other fees and taxes associated with homeownership that benefit local schools and services."
Find the list below:
Area | Median listing price | Total number of listings | Median age of inventory | Unemployment rate |
Pittsburgh, PA | $135,000 | 11,026 | 128 | 5.70% |
Tampa-St. Petersburg-Clearwater, FL | $169,900 | 21,062 | 88 | 5.90% |
Philadelphia, PA-NJ(NJ) | $174,900 | 10,656 | 141 | 6.40% |
Fort Worth-Arlington, TX | $175,000 | 8,433 | 67 | 5.40% |
Orlando, FL | $191,900 | 13,425 | 81 | 5.50% |
Jacksonville, FL | $198,000 | 9,787 | 95 | 5.60% |
Philadelphia, PA-NJ(PA) | $219,000 | 21,909 | 121 | 6.40% |
Dallas, TX | $224,900 | 15,887 | 57 | 5.40% |
Raleigh-Durham-Chapel Hill, NC | $227,500 | 9,435 | 98 | 4.90% |
Phoenix-Mesa, AZ | $244,900 | 23,654 | 59 | 6.20% |
When buying a new house, always remember:
1. Don't overindulge. Buy only what you can afford.
2. Don't forget to evaluate the total monthly housing costs before you decide on a place.
3. Look at the bigger picture and zero in on a house where you can see yourself living for a long time.
