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12 cities where homebuyers have a purchasing power advantage

Buying a home is arguably one of the biggest purchases a client will make so financial advisors will want to be well versed in markets where clients can get the biggest returns on their investments.

While certain areas are pricing potential buyers out of the market, a handful of cities offer purchasing power advantages with more sustainable mortgage rates and home price appreciation in relation to local wages.

Markets like Cleveland experienced a nearly 30% leap in real home prices year-over-year in September, but other regions saw growth hover around 11%, according to a First American Financial analysis of home values that factored in local salaries and mortgage rates in large cities.

From Minneapolis to Oklahoma City, here's a look at 12 housing markets offering buyers a purchasing power advantage.

The data, from the First American Real House Price Index, measures annual home price changes, taking local wages and mortgage rates into account "to better reflect consumers' purchasing power and capture the true cost of housing."

The September 2018 data is ranked by smallest year-over-year changes in RHPI for cities where the current value is less than 100 (an RHPI reading of 100 is equal to housing conditions in January 2000).

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Oklahoma City
Year-over-year RHPI: 11.64%
RHPI: 73.92
Median Sale Price: $152,000
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Washington, D.C.
Year-over-year RHPI: 12.31%
RHPI: 91.73
Median Sale Price: $389,168
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Seattle
Year-over-year RHPI: 14.14%
RHPI: 97.1
Median Sale Price: $469,367.61
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Boston
Year-over-year RHPI: 14.55%
RHPI: 91.01
Median Sale Price: $470,151
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Virginia Beach, Virginia
Year-over-year RHPI: 14.57%
RHPI: 98.68
Median Sale Price: $221,163
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Raleigh, North Carolina
Year-over-year RHPI: 14.67%
RHPI: 83.94
Median Sale Price: $253,000
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Memphis, Tennessee
Year-over-year RHPI: 14.82%
RHPI: 59.4
Median Sale Price: $143,300
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Chicago
Year-over-year RHPI: 15.23%
RHPI: 72.73
Median Sale Price: $227,866
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Pittsburgh
Year-over-year RHPI: 15.33%
RHPI: 70.28
Median Sale Price: $152,875
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Baltimore
Year-over-year RHPI: 15.87%
RHPI: 89.81
Median Sale Price: $264,000
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Hartford, Connecticut
Year-over-year RHPI: 16.61%
RHPI: 79.2
Median Sale Price: $227,750
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Minneapolis
Year-over-year RHPI: 17.92%
RHPI: 94.09
Median Sale Price: $251,500