Indianapolis in top 25 cities for first-time homebuyers
INDIANAPOLIS (WISH) — Indianapolis is a top city for first-time homebuyers according to a new study from SmartAsset.com.
Indianapolis came in 22nd out of 180 cities. The study released Aug. 3 ranked cities by growth potential, competition, affordability and population age.
Indianapolis came in 11th in growth potential with houses expected to increase in value by 7.5% over one year. The lowest came in at 1.2% and the highest at 9.8%.
The city ranked 18th in competition, meaning houses were pending sales relatively quickly compared to other cities. The quickest on the list was three days, the slowest was 41. Indianapolis came in at an average of five days or less on the market.
Ashley Farris-Rush, an Indianapolis real estate agent, says all the averages in the study reflect her experiences in recent sales. “The homes that are under the $300,000 range are sitting on the market for fewer days. There are more first-time homebuyers out there and it’s a strong demand for starter homes.”
Indianapolis was in the top 40% of the group in terms of average first-home price. The $265,000 in Indianapolis was much lower than the $1.429 million seen in San Jose, California, but an increase compared to Decatur, Illinois, which saw the lowest prices at $123,000.
“I’ve had first-time homebuyers approved for as low as $140,000 but [others] have been approved for as high as $600,000-$700,000,” Farris-Rush. “So it just depends on their portfolio. And so that’s a pretty accurate number as far as 260 being the median.”
Indianapolis was at the center of the group for population with the average at 34.2 years old.
Kevin Brinegar, president of Indiana Chamber, says having lower home prices can help attract young professionals to the city and state. “In a city like Indianapolis, it is large enough that there are a diverse array of job opportunities at different types of companies. Because some of the cities that have low cost for first-time homebuyers are smaller communities where the job opportunities are not as robust.”
Indianapolis stands out as the second-biggest city in the top 25, with a population of 882,000 people in the metropolitan area. Only the metropolitan area of Jacksonville, Florida, was larger with 954,000. Most other metro areas in the student were around or well under 200,000 people.
Indianapolis was one of nine Midwest cities in the top 25.
WISHTV.com and News 8 first reported about the study on Tuesday.