Hutto is the best market for first-time homebuyers in the Austin area

Hutto is the best market for first-time homebuyers in the Austin area


Source from: Joanne Drilling
Author from Austin Business Journal

According to a recent analysis conducted by Realtor.com, Hutto emerges as the prime market for first-time homebuyers in the Austin region. The study not only highlighted the top markets nationally but also pinpointed the leading city or suburb in major metropolitan areas. Key factors considered in the evaluation included median home listing prices, available inventory, projected price growth, commute durations, and unemployment rates.

The report reveals a median home price of around $387,000 for Hutto, situated approximately 30 miles northeast of downtown Austin in Williamson County. This stands in contrast to the metro-wide median price of about $500,000, as per Realtor.com's findings. However, the Austin Board of Realtors (ABOR) presents slightly lower figures, citing a median price in the Austin area closer to $450,000 and Hutto's median home prices at about $380,000.

Anticipated surges in housing demand in this Central Texas region are linked to the imminent activation of a large Samsung chipmaking facility near Hutto's city limits later this year, along with the potential arrival of other significant employers at the city's "megasite."

Realtor.com's national rankings for first-time homebuyers designate Irondequoit, New York, just outside Rochester, as the top market. With a median listing price of $187,000, an average commute of 22 minutes, a 12-month inventory of 34 homes per 1,000 households, and a projected home sale price growth of 10%, Irondequoit leads the pack. Benton, Arkansas, and Winterset, Iowa, secured the second and third spots, respectively.

Realtor.com's Chief Economist, Danielle Hale, explains that these areas are characterized by high housing affordability for young households, greater housing availability, robust local economies, and expanding housing markets. Communities at the bottom of the list are projected to experience a potential 3% decrease in home prices in 2024, while those at the top are expected to witness an increase of over 10%.

The current median home price nationwide stands at $382,000, while the average median home price in Realtor.com's top markets for first-time homebuyers is 42% lower at $223,720. Rising interest rates have elevated the income threshold required to afford a home. Nonetheless, the National Association of Realtors anticipates a slight cooling of rates to an average of 6.3% in 2024.

Without factoring in taxes and insurance, Danielle Hale estimates that an income ranging from $62,100 to $69,000 would be necessary to purchase a home at the $223,720 median price. This assumes a mortgage rate of 6.66% and a 30-year fixed mortgage with varying down payments ranging from 0% to 10%. Hale emphasizes that even lower-ranked areas, often located in pricier metro regions, still offer opportunities for first-time buyers, especially for those committed to their current location.

Source from: Drilling, Joanne (2024). Austin Busines Journal. https://www.bizjournals.com/austin/news/2024/02/01/best-communities-for-first-time-homebuyers-report.html

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