Top cities for first time homebuyers

by Property Management Software on December 31, 2016

First time homebuyers

First time homebuyers

It’s becoming harder to get started on the American Dream of homeownership.

Some eight years after its worst collapse since the Great Depression, the housing market has recovered in much of the country, with prices approaching peak levels set a decade ago.

But the supply of affordable houses available for first-time buyers remains tight, leaving many on the sidelines.

That shortage is worsening, according to real estate site Trulia.

Researchers there say the number of affordable homes on the market for the average first-time homebuyers this year took its biggest year-over-year drop in three years, falling 12.1 percent. The good news for younger home shoppers is that wages have begun rising after a long, flat spell following the Great Recession.

Though incomes are up, home prices have been rising even faster in many cities. That’s pricing out more households looking to get started as homeowners.

To afford the median-priced starter home, first-time buyers, on average, now have to pay some 39 percent of their monthly income — up 2 percent in three years. But mortgage lenders have held the line on strict credit and income standards when they approve a mortgage. As a result, there’s a squeeze on the supply of starter homes.

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