Is This the Worst Market For First-Time Home Buyers?

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For those of us who thought the coronavirus pandemic would slow down the real estate market, home buyers proved us wrong. In fact, according to CNBC, the pandemic kicked it into high gear with home prices up a staggering 30 percent compared to September 2019.
The inflated home prices and lack of inventory are a cause of concern for those looking to purchase their first home and many financial advisors suggest this could be the worst market for first-time homebuyers.
According to a report from CNBC, we are in a seller’s market and it’s unlikely housing prices will come down in the next year.
“Interest rates are at historic lows, there is a lot of demand for houses in the pandemic and there aren’t enough houses for people to buy,” said Daryl Fairweather, chief economist at Redfin, explained to CNBC.
Richard Kahler, a certified financial planner and the founder of Kahler Financial Group in South Dakota, told CNBC he recommends first-time homebuyers practice patience, telling the news outlet, “renting may be a better option now.”
So are there any cities in the US that are better for first-time homebuyers?
WalletHub took a look at the US real estate market and compiled a list of the best – and worst – cities for first-time homebuyers. They took a look at everything from cost per square foot, taxes, property crime, and cost of living.
According to WalletHub, these are the top ten best cities for first-time homebuyers:
1. Chesapeake, Virginia 2. Gilbert, Arizona 3. Lincoln, Nebraska 4. Cape Coral, Florida 5. Boise, Idaho 6. Hampton, Virginia 7. Peoria, Arizona 8. Virginia Beach, Virginia 9. Norfolk, Virginia 10. Surprise, Arizona
If you are looking to get your foot on the property ladder you may want to steer clear of California, with WalletHub saying the following US cities are the worst for first-time homebuyers:
1. Berkeley, California 2. Oakland, California 3. San Francisco, California 4. Santa Monica, California 5. Los Angeles, California 6. San Mateo, California 7. Santa Barbara, California 8. Glendale, California 9. Burbank, California 10. Boston, Massachusetts