Buying a new home is an exciting venture especially to first-time home buyers. It shows that you are responsible and financially capable of setting out on your own. While scouting for a first home may not be an easy feat, there are various things to consider as well including budget and proximity to offices or schools.
In the United States, 2016 data from the National Association of Realtors revealed that the median age for first-time home buyers is 32 years old while the median income is $72,000. Meanwhile, the size of homes for first-time buyers is 1,650 square feet and cost an average of $182,500. According to The Real Daily, those who bought homes in 2016 were composed of 66 percent married couples, 17 percent single women, seven percent single men, and eight percent unmarried couples.
Housing outlook for 2017
One of the stumbling blocks for home buyers this year will be mortgage rates, USA TODAY reported. The average 30-year rate climbed to 4.32 percent from 3.47 percent which boosted monthly payment on a $200,000 mortgage by $97. By the end of the year, the rate will increase to around 4.6 percent, adding $34 to monthly mortgage.
In addition, millennial home buyers who will be purchasing their first homes might experience a squeeze due to higher mortgage rates. These first-time buyers will rise 32 percent in November to 35 percent next year which is still below the normal of 40 percent.
Despite this, the general forecast for the U.S. housing market remains strong. In a blog post, Gordin Collins said that real estate and investment experts predicted that the U.S. housing outlook in 2017 will be a strong year with no risk of cash downturns. Moreover, existing home sales will total 6 to 6.5 million with 160,000 new homes built per year up to 2024.
According to Business Insider, one of the top things home buyers consider when purchasing property includes a strong education system, a safe neighborhood, property tax prices, and how valuable a property will be in the future. Those, in addition to CBS‘ home price hike percentage, gives us five standout US cities for buying a home in 2017.
Projected home price rise: 5.7 percent
Orlando’s healthy real estate market is going to see a boom this year as home prices are expected to rise 5.7 percent. According to the Orlando Sentinel, Orlando catapulted to the top of the US market position due to factors such as limited supply, rising home values, ample jobs, and income growth. In addition, the report said that analysts are forecasting that prices will not lead to a bubble as mortgages are not easy to obtain. Trailing behind Orlando in the Florida ranking include Palm Beach, Fort Lauderdale, and Tampa.
Projected home price rise: 5.6 percent
The home of grunge rock is already a costly city to live in and it will continue to be as such as homes are projected to a 5.6 percent rise. The Seattle Times reported that the city is among the fastest-growing in terms of home markets in the US and average homes are sold off in as little as 15 days. Despite this, Seattle remains to be one of the most expensive cities to buy a house in due to factors such as Amazon who is continuing to expand in the state by adding more employees and foreign buyers.
Projected home price rise: 5.2 percent
With a median home listing price of $399,900, Portland is an ideal place to start fresh and is popular among millennial homebuyers. A report from Oregon Live stated that there is a “sense of urgency” among buyers as rent becomes expensive even for “micro apartments”. In addition, developers are doing away with simple homes to replace larger ones that can cater to multi-family rentals.
Projected home price rise: 4.8 percent
According to data from Redfin, Sacramento’s Hollywood Park is a favorite among home buyers. With median home prices of $345,000, the district is considered as a “second-tier” city due to factors such as not being too far away from downtown and a location just outside the “urban core”. Moreover, the city has a lower cost of living compared to neighboring California cities like San Francisco and Los Angeles.
Projected home price rise: 4.7 percent
Utah Business reported that Ogden ranked third in terms of improvements in the U.S. housing market. Freddie Mac, a mortgage loan company ranked the state as one of the strongest housing markets due to Utah’s healthy economy. Moreover, homes are selling fast in the state as it continues to experience low unemployment rates, high and young marriage rates and an increase in population.
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