Seattle is an attractive city for job seekers flocking to a variety of tech companies, but those looking to put down roots will be discouraged to learn that the city is among the 10 most-challenging markets in which to be a first-time home buyer.
A new analysis by Zillow ranks Indianapolis, Pittsburgh and Memphis, Tenn., as the top three markets in the U.S. for first-time home buyers. The Seattle real estate media company used four variables to compile its list: inventory levels, competition from cash buyers, affordability, and median home values.
The median home value in Indianapolis is $130,200. Zillow puts the number at $382,700 for the Seattle area, which makes it pricey in comparison to the national average of $186,200.
The available inventory of homes in cities such as Cleveland, Chicago and Tampa, Fla., is high, according to Zillow. As anyone who has been searching for a home in Seattle can tell you, it’s a different story here and there’s just not a lot out there. Salt lake City, Austin and San Francisco are among cities in the bottom 10 of Zillow’s analysis where inventory is also low.
“Buying your first home is a big decision that takes a lot of planning,” Zillow chief economist Dr. Svenja Gudell said in a news release. “First-time buyers across the U.S. are up against high prices and low inventory, but these are the places where the availability of affordable, entry-level homes and the presence of cash-buyers are less of an issue. First-time buyers in these markets won’t have to deal with as many bidding-wars or run-away prices; they’ll be able to find a first home that fits their needs with less stress. With record low mortgage rates, it’s a good time to buy a home and certainly worth considering.”
