Shutterstock
- First-time homebuyers are more likely than veteran homebuyers to go over their budgets, according to Zillow.
- A 2019 study by Zillow revealed the 10 most challenging metros for first-time homebuyers.
- Turns out, five of the most difficult places to invest in real estate in the US right now are in California.
- Visit Business Insider’s homepage for more stories.
First-time homebuyers in the US are on the hunt for affordable homes in prosperous markets — but scoring a deal like that is easier said than done.
According to Zillow, first-time homebuyers account for 46% of all homebuyers and are more likely than veteran homebuyers to go over their budgets.
Read more: The 10 best places in the US for first-time homebuyers to invest in real estate right now
In order to make a good investment, first-time homebuyers — like all homebuyers — have to understand which market trends are considered red flags. Just consider markets like San Francisco and Seattle, which, according to Zillow, show trends of competitive prices, low inventory, and weak home value appreciation forecasts.
To establish a list of the most challenging markets for first-time homebuyers, Zillow evaluated metropolitan areas on four data points: current median home value; strength of home value appreciation forecast; size of current inventory; and current percentage of listings with a price cut. All four data points were given equal weighting. Listing and home-value data for all cities listed below has been sourced from Zillow, and represents each market as of June 2019.
Keep reading for a ranking of the top 10 most difficult metros for first-time homebuyers.
10. Boston, Massachusetts
Richard Cavalleri/Shutterstock
Share of listings with a price cut: 14.6%
The median home value in the Boston, Massachusetts metro area is $464,400 and the median listing price per square foot is $302.
According to Zillow, home values have increased by 2.7% since June 2018.
9. San Jose, California
Getty Images
Share of listings with a price cut: 18.4%
The median home value in the San Jose, California metro area is $1,160,800 and the median listing price per square foot is $678.
According to Zillow, home values have decreased by 8.2% since June 2018.
8. San Diego, California
Shutterstock
Share of listings with a price cut: 19.9%
The median home value in the San Diego, California metro area is $590,000 and the median listing price per square foot is $384.
According to Zillow, home values have increased by 1% since June 2018.
See the rest of the story at Business Insider
See Also:
- The 10 best places in the US for first-time homebuyers to invest in real estate right now
- 8 ways American millennials are changing homeownership, from moving to commuter towns to wiping out the starter home
- 7 of the world’s most incredible new buildings in 2019, according to architects
SEE ALSO: The 25 US suburbs where home values are growing the fastest, ranked
DON’T MISS: The most expensive and affordable states to buy a house, ranked
Source: Business Insider – feedback@businessinsider.com (Libertina Brandt)