Florida Is A Hot Market For First Time Home Buyers
Florida is a hot market for first time home buyers. Realtor.com recently reported it’s top 10 cities for first time home buyers and 3 Florida cities made the list. Those cities are Tampa-St Petersburg-Clearwater coming in 2nd, Orlando coming in 5th and Jacksonville coming in 6th.
Top 10 Markets for First-Time Home Buyers by RankMSAMedian Listing PriceTotal ListingsMedian Age of InventoryUnemployment ratePittsburgh, PA$135,00011,0261285.70%Tampa-St. Petersburg-Clearwater, FL$169,90021,062885.90%Philadelphia, PA-NJ(NJ)$174,90010,6561416.40%Fort Worth-Arlington, TX$175,0008,433675.40%Orlando, FL$191,90013,425815.50%Jacksonville, FL$198,0009,787955.60%Philadelphia, PA-NJ(PA)$219,00021,9091216.40%Dallas, TX$224,90015,887575.40%Raleigh-Durham-Chapel Hill, NC$227,5009,435984.90%Phoenix-Mesa, AZ$244,90023,654596.20%
Here are the criteria realtor.com® used to rank the top 10 markets:
Location, location, location: Market popularity is an important consideration for first-time buyers. It is common for owners to become “move up” buyers and purchase a larger home a few years after a first-home purchase. Buying a home in popular markets increases the likelihood of making money on a first home.
Affordable list prices: One of the biggest barriers to homeownership is affordability. Homeowners not only have to be able to afford a monthly mortgage payment, but must have enough saved for a down payment.
Ample inventory: Inventory shortages can often spark bidding wars in which investors or buyers with higher incomes can price out first-time buyers. Markets with an ample inventory of homes for sale are less likely to experience bidding wars.
Reasonable time on market: Median age of inventory is a clear indicator of demand in a market. High demand is another factor that prompts bidding wars and makes it difficult for first-timers to get the home of their dreams. Additionally, first-time homebuyers should consider how long a home has been on the market. They may have an opportunity for a better deal if a seller is required to price a home more competitively in order to close.
Steady employment: Unemployment rates affect all aspects of the economy, including first-time buyers. In order to pay for their mortgages, new buyers need to work and hold steady jobs in markets that support their job.
Methodology: Realtor.com® examined key housing indicators including: search rank, median list price, year-over-year change in inventory, median age of inventory and unemployment rates across 146 markets and evaluated the metrics against the needs and desires of the typical first-time homebuyer. All metrics considered were pulled directly from realtor.com®’s February 2014 data and the U.S. Bureau of Labor Statistics.