Investors and home sellers alike should consider where the real estate recovery will occur first. Given the significant government push towards homeownership and the slow economic recovery, investors and sellers should expect the recovery to first start in the lowest tier of the market.

Starter Homes and the First Time Homebuyer

Starter homes vary by state and city. In New York City a starter home might be a 600 square foot studio condo selling for $550,000, while a starter home in Martinsville, VA might be a 2 bedroom, 1,100 square foot ranch home selling for $65,000. Regardless of the definition of starter home in any one neighborhood, sellers and investors should expect these homes to be snapped up first and quickly.

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