Houston a Top City for First-Time Home Buyers
Houston is the top city in Texas for first-time home buyers, according to a recent article in the Houston Business Journal. Nationally, Houston is rated as the #5 city for first-time buyers, based on an analysis of every U.S. city with a population of more than 300,000. Here are some the advantages that Houston offers to home buyers!
Houston has 186 HUD-approved lenders, more than any other city. This makes FHA loans very accessible, which are popular with first-time home buyers. FHA loans allow down payments as low as 3.5%, and also allow the down payment funds to come from a cash gift. Additionally, FHA loans are a bit more forgiving when it comes to less-than-premium credit scores, and they allow higher debt-to-income ratios. In short, it can be easier for first-time buyers to qualify for an FHA mortgage.
Meanwhile, home affordability is improving in Houston, with the price per square foot averaging $87.50. Nationally, the average home price per square foot runs $127.19.
Another element of Houston real estate is home price volatility. Ideally, home buyers benefit when prices are stable and show gradual increases, which allow steady gains in home equity, with minimal risks of a downturn. Since Houston experienced rapid price increases in recent years, our market volatility index is a bit higher than the national average. Our home price volatility was rated at 4.9%, with the national average standing at 3.7%.
Yet Houston’s real estate market has less volatility than some other Texas cities. For example, Austin has a home price volatility index of 5.4%. At the same time. Austin’s home price per square foot averages $163.50; nearly double the cost of Houston.
Houston also provides a good quality of life. Houston was recently named among the best cities for young families, based upon cost of living, educational quality and accessibility, cost of housing, recreational opportunities and property tax rates.
The Houston Energy Corridor is a great example of Houston’s quality of life, with 26,000 acres of parks and green space, and 50 miles of recreational trails. Houston’s world-class zoo, museums, theaters and other major attractions are within easy reach. We also have plenty of shopping and dining close to home!
Let us be your guide to wonderful homes in the Houston Energy Corridor! We will be happy to provide you with local market insights, current sales trends and community information. Contact us today for your home buying consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079