Inman News picked out 10 markets likely to have a higher-than-average share of first-time buyers, based on data from the U.S. Department of Housing and Urban Development on loans backed by the Federal Housing Administration.
First-time buyers are a huge portion of the market for real estate investors flipping houses. The report includes exhaustive research on each of the 10 cities, which range from the East Coast to the South to California.
The markets were chosen based on the number of home purchases by first-time buyers in 2011. First-timer buyers use FHA loans frequently because they can get into homes with as little as a 3.5 percent down payment.
In 2011, the FHA’s share of loans was 29.8 percent of the market, down from 32.3 percent in 2010 but far above the 4.5 percent share in 2005 and 2006.
The National Association of Realtors reported that more than half of first-time buyers (54 percent) chose FHA loans between July 2010 and June 2011.
Here are the 10 metro areas on the list, with estimated population in 2011, percentage of sales to first-time buyers with FHA loans, the median sale price for all homes and the total number of sales in 2011:
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