It’s Official: Tampa Is The BEST Market For First-Time Homebuyers
While many first-time buyers looking for an affordable home in the Tampa Bay area may be surprised – or even dubious – when reading that headline, according to a Zillow report released on PR Newswire, it’s true: Tampa made the top of their 2018 Best Markets for First-Time Buyers Analysis list.
According to their analysis, the ‘best markets’ for first-time home shoppers are those that offer more affordable homes in a less competitive environment.
Zillow used the following five metrics to determine what constituted the best markets for first-time buyers:
- Low median home value that requires a smaller down payment
- Strong forecasted home value appreciation
- High inventory-to-household ratio, to indicate available supply
- Short breakeven horizon, which is the time it takes for buying to be financially better than renting
- High share of listings with a price cut
To be clear – and fair to first-time homebuyers in Tampa who are likely reading this and still shaking their heads in disbelief – the U.S. housing market is competitive for all buyers as there are simply not enough homes for sale to meet today’s ever-growing buyer demand.
Zillow ranked the 35 largest U.S. housing markets based on where first-time buyers have the best chance to find an affordable home with little buyer competition and strong forecasted home value appreciation. First-time buyers make up 42 percent of all buyers, according to the 2017 Zillow Group Report on Consumer Housing Trends.
And as of January of this year, inventory of the most affordable homes was down 17.1 percent annually – compared to a 9.7 percent decrease for all homes.
Further, first-time buyers are at a significant disadvantage as they won’t have the capital from a previous home sale to help with a down payment – the most commonly cited barrier to homeownership – or even be competitive in bidding wars.
Still, new buyers have it ‘easiest’ in the Southeast, especially Texas and Florida. Five of the top 10 markets for first-time buyers are in those two states as homes in those markets require a smaller down payment, and buyers are more likely to encounter price cuts.
The complete list of top-10 markets was as follows:
- Tampa, FL
- Indianapolis, IN
- Houston, TX
- Orlando, FL
- San Antonio, TX
- Saint Louis, MO
- Philadelphia, PA
- Atlanta, GA
- Las Vegas, NV
- Dallas, TX
Unsurprisingly, first-time buyers are likely to face the most difficult markets on the west coast, especially California metros as not only are homes expensive, but inventory is incredibly limited, and it takes much longer to break even on the purchase.
And as more millennials become ready to buy a home, they enter a highly competitive housing market that has been plagued by low inventory, especially among entry-level homes, according to a Zillow senior economist. But thankfully, southeastern markets will be easiest – relatively speaking – for new buyers, as homes are more affordable and there’s less competition.
So in order to help first-time buyers better understand all the costs associated with homeownership, RealEstate.com, a Zillow Group brand, boasts an ‘All-In Monthly Price’ calculator for every home, and breaks out every estimated expense that may roll up into a monthly payment, including principal and interest, property taxes, homeowners insurance, HOA fees, utilities, and closing costs.
Handy-dandy calculators and statistical analyses are nice and all – don’t get us wrong – but there’s nothing quite like having a boots-on-the-ground team of real estate professionals putting in the time and energy to find you your dream home. So if you’re ready to find your first house to call home, put the experienced agents at DeLeon Sheffield Company in your corner. You’ll be glad you did.
Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’
