Philadelphia area named as fourth-best market for millennial homebuyers

A recent report by RealtyTrac declared Philadelphia one of the best markets for first-time homebuyers in 2015.

Last year, buyers purchasing a home in the Philadelphia area put down 13.4 percent or an average of $12,054. Nationwide, buyers purchasing a home put down .6 percent less, or 14 percent down, equaling an average of $32,141.

Not only was the down payment less than the national average, the percentage of millennials residing in the area increased nearly 25 percent from 2007 to 2013.

The top ten list, which also included Montgomery, Tenn.; Davidson, Tenn; and Durham, N.C.;  is based on the average down payment percentage being lower than the national average of 14 percent, as well as an increase of at least 20 percent in the millennial population.

“The combination of an influx of millennials and relatively low average down payment percentages indicate markets that will see a quicker return of the first-time homebuyer,” said Daren Blomquist, vice president at RealtyTrac, in a press release.

The report included loan and sales data for both single-family homes and condos in 386 counties across the country. The study included nearly 1.5 million purchase loans.

“This analysis shows that first-time homebuyers have a better shot at buying a home in low-priced markets, not just because of the lower price point but because on average buyers are putting down just 12 percent in those markets compared to 24 percent in high-priced markets,” added Blomquist. “Meanwhile, the markets where millennials are moving the most have above-average down payment percentages, which will make it tough for millennial renters to convert into first-time homebuyers in those markets.”

The report also found that in the 25 counties with the highest median home sales, the average down payment was 24 percent or $138,547. On the other end of the spectrum, of the 25 counties with the lowest median home sales , the average down payment was 12 percent or $8,239. RealtyTrac found that on average, lower down payment loans made for 25 percent of all home purchases in these counties in 2014.