LendingTree Ranks Most Competitive Homebuyer Markets
We've been hearing for years about competitive housing markets, but with low levels of housing inventory and rising home prices, almost any market can be competitive. What it really comes down to is the competition among buyers. That's why
- The share of buyers shopping for a mortgage before identifying the house they want. Buyers with financing in place are more appealing to sellers and can compete with cash buyers.
- Average down payment percentage. Having a higher amount of money saved for a down payment can enable you to borrow more money or be offered a lower interest rate, allowing you to make a stronger offer.
- Percentage of buyers who have prime credit (above 680). Borrowers with higher scores have more financing options to make more competitive offers. The cities/markets below are ranked for 2018 using the criteria noted above, including the relative data used to determine the ranking along with the market's overall rank from the prior year.
Key Findings:
Six of the top 10 most competitive housing markets are in
Some 60 percent of home shoppers applied for a mortgage before identifying a house. The two cities also came to the table with the highest average down payment of any region, at 19 percent. Furthermore, nearly two-thirds (64%) of
Tech industries are key.
The strength in the
Go west. When you get to the water, keep going.
The top 10 are all in western states. If you go further west you get to
The opposite to being the most competitive is not a bad thing. Here are the most accessible cities:
At the other end of the list are three cities where less than half of home shoppers apply for their mortgage before house hunting; the average home shopper offers a down payment of just 12 percent and less than 40 percent of shoppers have prime credit scores. This is great news for buyers in
Regardless of the level of competition in your area, being a well-prepared buyer increases your odds of securing that dream home. The most significant of the three variables is having financing in place, giving homebuyers a leg up on the competition and reducing delays in the process. Buyers with less cash available for a down payment or those with less than perfect credit should start the loan process even earlier to get pre-approved before house hunting. Homebuyers across the credit or down payment spectrum should check their credit scores beforehand, know what they can reasonably afford, and shop around for multiple loan offers since interest rates vary between lenders - regardless of whether they are in the hottest, or most accessible housing markets in America.
For more information on the study, visit https://www.lendingtree.com/home/mortgage/most-competitive-housing-markets/.
About
MEDIA CONTACT:
704-943-8208
Megan.greuling@lendingtree.com
View original content with multimedia:http://www.prnewswire.com/news-releases/lendingtree-ranks-most-competitive-homebuyer-markets-300584588.html
SOURCE
News Provided by Acquire Media