April 17, 2021

MP Now News

Mortgage News

These are the most competitive housing markets in the U.S.

In the most competitive real estate markets in the country, virtually every buyer has impeccable credit, a few hundred thousand dollars – or more – to pay, and knows what mortgage options they have. Not many buyers need one at all.

Online loan marketplace LendingTree ranked the 50 most competitive metro areas in the US based on specific financial criteria of homebuyersand discovered some interesting data.

Based on the average percentage of down payment, the proportion of homebuyers with credit scores above 720, and the proportion of homebuyers who buy a mortgage before looking for a home, LendingTree found that San Jose and San Francisco two California marketsand Raleigh, NC, are the three metros with the most competitive homebuyers.

LendingTree reviewed more than 750,000 mortgage loan applications that came through the market from March 1st through March 24th.

San Jose took first place in both the “Credit Score” and “Down Payment” categories, bringing it to the top overall. LendingTree, San Jose ranked 17th in the “Shopping Around” category, which is important as it generally indicates prepared, well-educated shoppers. But given that the city in the heart of Silicon Valley has one Median home sales of $ 1.2 millionIt is likely that potential buyers who are not buying mortgages simply don’t need them. In San Jose, 84.15% of shoppers had a credit score of 720 or greater and the average down payment was 23%, according to LendingTree analysis.

In the nearby San Francisco real estate market, where the average home sells for $ 1.4 million, 81.96% of buyers had a credit score of 720 or greater and the average down payment was 21.43%. In up-and-coming Raleigh, where the median home price is $ 340,000, 70.48% of buyers had a credit score of 720 or higher and the median down payment was 21.15%.

It won’t get harder to close a house until 2021, said Tendayi Kapfidze, LendingTree’s chief economist.

“Buyers should be wary of the pressure to buy a home because a market is so competitive,” said Kapfidze. “Buyers’ regrets about buying a home are common and can affect their emotional and financial well-being. Record lows in the past year due to the COVID crisis have worsened the picture in an interesting way. Homeowners who have now refinanced have interest rates that tie them up, as selling and buying another home would mean giving up their record low interest rates. “

Other cities that put LendingTree on the list of the most competitive metros were Portland, San Diego, Los Angeles, Boston, Kansas City, New York, Minneapolis, and Milwaukee.

According to LendingTree, the country’s least competitive buyers are in Virginia Beach, followed by Riverside, California, and Atlanta. Homes in these three cities sell for an average of $ 314,000, $ 314,000, and $ 322,000 apiece, respectively Realtor.com and Zillow.

The real estate markets that made up the rest of the LendingTree list of least competitive metros were Memphis, Tennessee; Orlando Florida; Oklahoma City; Jacksonville, Florida; Birmingham, Alabama; Indianapolis, New Orleans, Las Vegas and Richmond, Virginia.

The average down payment percentage in the top 11 most competitive metros was 21% according to data from LendingTree. On these 11 subways, 62% of shoppers bought a mortgage before looking for a home. In the 50 largest metropolises in the country, this figure was 64%.