Wed, 03/03/2021 – 09:04
Despite low, low housing inventory and rising home prices, first-time buyers accounted for 31% of home sales in the fourth quarter of 2020. First-time buyers are known to have less cash than repeat buyers, and across the 50 largest U.S. metros, homes remained five times more expensive than the average first-time buyer income, reports NerdWallet. Compared to the third quarter, this is a slight dip in price, allowing buyers to take advantage of homes in four metro areas: St. Louis, Pittsburgh, Cleveland, and Buffalo, N.Y. On the other end, Los Angeles, San Diego, San Jose, San Francisco, and Sacramento remained the most pricey metros.
Nationwide, homes were listed for 4.7 times median first-time buyer income in the fourth quarter.
First-time buyer guidance: Winter is generally the least expensive time to buy a home (with a few exceptions). While starter homes don’t magically go from out of reach to attainable this time of year, especially in 2020-2021, the cold weather and holiday season may mean less competition, and more motivated sellers. If buyers have any increased leverage, now would be the time. To be sure, supply is constrained during these months, too, even more so in 2020-2021, so pickings will be slimmer. But if pricing is your top concern, the end of the fourth quarter leading into the first may be your best bet for your budget.