Zillow ranks Memphis as one of the best markets for first-time home-buyers looking for an affordable house. This small home built in 2007 at 664 N. Second in Uptown, for example, is on the market for $84,900.

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By Thomas Bailey Jr. of The Commercial Appeal

Memphis is the nation's third-best market for first-time home-buyers, according to Zillow.

The real estate database company ranked Memphis high based on its relatively affordable median home value of $112,100, an "average'' number of houses available for sale, and the portion of monthly income needed for a mortgage payment (10.9 percent) compared to a monthly rent payment (27 percent).

The U.S. average for the portion of income spent on a monthly mortgage is 15 percent, according to Zillow. The company calculates the U.S. median home value to be $186,200.

Indianapolis ranked first and Pittsburgh second in the analysis. Rounding out the top 10, in order, are Cleveland, Chicago, Oklahoma City, St. Louis, Houston, Tampa, and Birmingham.

Veteran Memphis real estate agent Bill Malone agrees Memphis is a relatively strong market in which to buy a starter home, but disagrees with Zillow's assessment that Memphis has an average number of available homes for sale.

"I think the inventory is very low,'' he said. "The number of listings by the Memphis Area Association of Realtors is far below what it normally is.''

But Malone, a broker with Crye-Leike Realtors, said home prices in Memphis have remained steadier than in many other markets.

"In Memphis, what you have are very affordable, good housing. What (Zillow) describes as a median price is what we'd look at as a good, average price for a good home in a great neighborhood,'' he said.

Zillow also ranked the most challenging cities for first-time buyers. They are, in order: St. Lake City, Washington, New York City, Austin, San Jose, California, Los Angeles, Sacramento, California, San Francisco, San Diego and Seattle.

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