TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1285919
M R EP O RT | 7 MDWELL Source: Black Homebuyers Though home prices are increasing, inventory is low, prompting motivation among potential homebuyers. 20 Cities With the Most Competitive Homebuyers M any housing markets are teeming with as much competition as ever, according to LendingTree.com, which, in August, ranked the housing markets with the most competitive buyers. The report also ranked the share of buyers who have credit scores above 720 and share of buyers who shop around for a mortgage before looking for a house. These criteria were chosen because they each play an important role in a buyer's ability to get a home loan. Since 62% of homebuyers obtain a mortgage to purchase a home, those who are strong in these categories will likely have a competitive advantage over other homebuyers.* The report showed home prices, stoked by low inventory, budging up. Meanwhile, in the shadow of COVID-19, borrowing standards have been tightened by lenders. Borrowers who might have been approved for a loan more easily at the beginning of the year now could find themselves unqualified. Researchers encouraged prospective homebuyers in the "Most Competitive Housing Markets" to remain in a "highly competitive" mode. Note: (More competitive buyers will generally put down more on a home.) City Median Down Payment Percent Share Who Shopped Around Raleigh, NC 19.70% 76.55% Pittsburgh 22.22% 75.09% Jacksonville, FL 22.22% 75.58% Boston 21.67% 68.08% San Francisco 20.69% 67.35% Tampa, FL 20.99% 76.57% Hartford, CT 21.84% 72.35% Chicago 19.78% 74.34% New York 21.25% 68.40% Sacramento 20.00% 73.26% Detroit, MI 20.37% 76.23% Phoenix, AZ 19.25% 75.76% Denver 17.25% 75.53% Buffalo, NY 21.11% 71.13% Indianapolis, IN 20.37% 75.22% San Diego 18.93% 69.02% Houston, TX 20.45% 75.27% Louisville, KY 21.92% 74.88% Kansas City, MO 20.99% 61.42% San Jose, CA 25.00% 65.66% Where Competition Is King