Home shoppers in San Jose, Calif., Raleigh, N.C., and Pittsburgh may find themselves up against the most competitive buyers in the nation, according to a new study from LendingTree.
LendingTree’s researchers ranked the 50 largest metro areas based on three categories: average down payment percentage; the share of buyers who have credit scores above 720; and the share of buyers who shop around for a mortgage before looking for a house. Buyers who are the most strong in these categories will likely have a competitive advantage over other home shoppers.
For example, the average down payment in the top 11 metros with the most competitive buyers is 21.4%. Buyers who offer larger down payment tend to have more enticing offers. Further, nearly 71% of buyers in the top 11 metro areas also have credit scores of at least 720 or higher.
Meanwhile, buyers in Memphis, Tenn., Virginia Beach, Va., and Oklahoma City tend to have the least competitive buyers in the country, the LendingTree study finds. Home shoppers in these areas tend to have lower credit scores and smaller down payments, and are less likely to shop around for a mortgage before choosing a home.