Top 10 Markets for First-Time Home Buyers

Similar to 2022, 2023 was a very challenging year for first-time home buyers. According to Bankrate, first-time home buyers comprised 32% of all home buyers, down from the 38% average and the fourth-lowest share in over 40 years. High home prices, rising mortgage rates, and low inventory have made finding and purchasing a new home difficult. But in some markets in the U.S., finding your dream home is easier than in others. The?Realtor.com 2024 National Housing Forecast?selected ten attractive markets for first-time home buyers. Their criteria included the following:

• The number of 25-34-year-olds in the population.
• The inventory of homes for sale.
• The affordability of the homes is based on active listings per 1000 existing households.
• The forecasted unemployment rate of the surrounding metro area estimates the number of available jobs.
• The average work commute time.
• The area’s amenities are estimated by the number of food and drink establishments per 1000 households.
• Estimated metro home sales and home price growth for 2024.

Based on these criteria, Realtor.com selected the following as the Top 10 Markets for First-Time Home Buyers for 2024:

1. Irondequoit, NY
2. Benton, AR
3. Winterset, IA
4. Newington, CT
5. Council Bluffs, IA
6. Cheektowaga, NY
7. Grand Rapids, MI
8. Moore, OK
9. Mattydale, NY
10. Riviera Beach, MD

Some highlights of the forecast:

• The top markets have an average estimated 2024 25 to 34-year-old homeowner share of households of 8.1%, compared to 5.4% for the overall list of cities and towns and 5.4% nationally.?
• In 2023, the average number of active listings for the top markets as a group per 1,000 existing households was 40.2, slightly lower than the list average of 40.5 but higher than the national rate of 38.6.
• The 2023 listing price for the top markets as a group has a 25- to 34-year-old income ratio of 3.1, lower than the city/town average of 5.8 and the national rate of 5.4.?Magna, UT, has the lowest unemployment rate, with 2.4%.
• The top markets are located within metro areas, with an average forecasted 2024 unemployment rate of 3.6%, lower than the town/city average of 4.2% and the projected national rate of 4.2%. Somersworth, NH, has the best amenities and the highest number of food and drink establishments per household.
• The top cities' average expected 2024 commute time is 24 minutes, less than the city/town average of 30 minutes and the national rate of 29 minutes.

If you are a first-time home buyer, here are?some resources?to help you. You can also call one of the experts at NASB at 855-739-8713.

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