In the recent real estate analysis done by Zillow it was revealed that Indianapolis is the friendliest city for first time home buyers. It was reported that they looked at the median home values as lower home values would mean that home buyers would need less cash for down payment to break into the city's housing market. They also looked into affordability as places where mortgage payments takes up only a small share of the people's income and rental payments are also more unaffordable. The site also considered inventory and the cash buyer competition as it means that it is easier to find perfect homes for people and there is also less competition.
The analysis revealed that the home value in Indianapolis is around $130,200 and the buyers can expect to spend just 11 percent on their monthly income for mortgage payments. Compared to home buyers, renters in the area can expect to put 26 percent of their monthly income to their rentals so buying a home would be much better than renting one.
Zillow Chief Economist Dr. Svenja Gudell said that buying the first home could be a big decision for many and it takes a lot of time planning it. First time buyers across the country are up against high prices and low inventory but many people don't know that there are places which offer affordable entry level homes. In Indianapolis, first time home buyers won't be stressed on lacking cash for down payment or have a hard time paying off the mortgage.
According to PR Newswire, Pittsburgh, Memphis, Cleveland and Chicago are among the top five friendliest city for home buyers after Indianapolis. On the other hand, Salt Lake City is the toughest place for first-time home buyers and this is followed by Washington and New York. Other challenging markets are in San Jose, Seattle and Austin where many millennials are moving in because of hot job markets.
