You can find the most competitive buyers in Denver, Los Angeles, and Portland, Ore., according to a new analysis by LendingTree, an online loan marketplace. Buyers in these cities have higher than average credit and the ability to put down a larger down payment, making them highly competitive in a multiple-offer situation.
LendingTree analyzed the 50 largest metro areas and examined competitiveness by the share of buyers shopping for a mortgage before identifying the house they want, the average down payment percentage, and the percentage of buyers who have good or excellent credit (above 680). A more competitive buyer tends to have higher credit and the ability to put down larger down payments, researchers note.
In general, the most competitive buyers live out west, researchers found. Of the 10 most competitive cities, only two—St. Louis and Boston—were not located in a western state, LendingTree notes. High-paying tech jobs may be key to making western cities more competitive.
A less competitive market, on the other hand, could be beneficial to buyers. They may find fewer multiple-offer situations. Birmingham, Ala.; Virginia Beach, Va.; and Pittsburgh have the least competitive buyers in the country, according to the study.
Source: “LendingTree Ranks Most Competitive Housing Markets,” LendingTree (Jan. 15, 2019)
