Where Should Buyers Shop For Homes in 2016?

By Tali Wee

Buying a home is even harder than just a year ago, as fewer homes are available and buyers in many desirable markets are falling subject to bidding wars and incredibly steep buying competition. The best way to locate your dream home is to begin shopping in areas where buyers have the most negotiating power. When inventory is high, shoppers have more options to choose from and sellers are more eager to accept offers.

Researchers at Zillow narrowed down a list of the top 10 buyers’ markets by evaluating locations with the most price cuts and the longest average number of days for-sale homes sit on the market. If you’re thinking of buying a home soon, you’ll have the most luck in the following markets.

The Top 10 Markets for Home Buyers

  1. Philadelphia, PA
  2. Chicago, IL
  3. Baltimore, MD
  4. Hartford, CT
  5. New York/ Northern New Jersey
  6. Miami, FL
  7. Indianapolis, IN
  8. Jacksonville, FL
  9. Virginia Beach, VA
  10. Orlando, FL

Across the U.S., the median home value is $187,000, making a standard 20% down payment around $37,400. Although buyers these days can finance homes with less than 20 percent down, acquiring a mortgage is a major financial decision. You want to make sure you’re buying a home at a price you feel confident matches its value.

Homes in Philadelphia cost a bit less than the national rate, with a median value of $121,800. Plus, homes in Philly are expected to rise in value throughout the year, appreciating an additional 2.7% – slightly faster than the expected national lift of 2.4%.

BurlingtonMeadows

Burlington Meadows

If you’re looking to buy in Chicago, values sit at $203,700 with an anticipated 2.8% appreciation by year’s end. Besides the obvious appeal of such a major city making the list, Chicago offers many small communities with new homes that may meet your shopping must-haves. Check out your new construction options in Sagebrook offering both townhomes ($185,990) and single family homes ($305,990) Lehigh Station ($249,990), Lakewood Prairie ($215,990) and Kearney Glen ($199,990).

HickoryRidge

Hickory Ridge

A little more than halfway down the list of ideal markets for buyers is Indianapolis. In seventh place, Indianapolis offers new construction communities such as, Mapleton at Wynne Farms ($195,990), Greenwood Station ($192,990) Cumberland Farms ($181,990) and Marlin Meadows ($176,990). Although these homes are priced above the state median home value of $116,000, the communities offer grand homes with accessible green spaces, clubhouses, and even schools. Plus, homes in Indiana are expected to appreciate another 2.8% within the year.

FawnLake

Fawn Lake

Virginia Beach can expect far less appreciation this year, just 0.7%, but home values already stand at $248,800 – more expensive than Philadelphia, Chicago, or Indiana properties. If you’re on the hunt for new constructions in the state of Virginia, check out townhomes at Overlook at Cascades ($539,990), the gated community of Fawn Lake ($371,990), or luxury urban residences at Majesty West ($1,189,000).

SummerlakeGroves

Summerlake Groves

Lastly, the city of Orlando squeaked in at the bottom of the list of top markets for home buyers. Home values ($150,700) are closest with properties in Philadelphia – much cheaper than in Virginia Beach. Additionally, Orlando homes should jump in value throughout the year by a huge 4.2%. If you’re shopping for new construction homes in Orlando, consider single-family homes in Econ Landing (216,990), Hickory Hammock featuring both single family homes ($287,990) and townhomes ($232,990) or Summerlake Groves featuring both single family homes ($266,990) and townhomes ($227,990)

Regardless of where you shop for homes, prepare beforehand by getting preapproved for a loan and finding a lender you trust. That way, when you find your dream property, you’re ready to buy without the added pressure of completing all the necessary paperwork in a few short days.

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