In the majority of major metropolitan markets in the U.S., homes that are considered to be entry-level for first time buyers grew much faster than more expensive properties. This is according to a new report from Zillow.
While the housing market is hot across the board, demand from first-time buyers, largely Millennials who are coming in to prime home buying age, pushed the values for these entry-level properties higher than other homes. Homes within the bottom third of the market in terms of price grew by 9.8 percent in value over the last year. This is faster than the annual growth of 9.5 percent for the priciest homes in a region.
Owners of these entry-level homes are building wealth and have see significant financial gains in the profits when selling their homes.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.