Buying your first home is definitely something that warrants a lot of money, time, patience – and research, above all. Naturally, some real estate markets are more accessible to first-time homebuyers than others. What’s more, it seems that cities in Florida consistently top the charts looking at home purchasing favorability. These kinds of reviews show that Tampa is the best market for first-time homebuyers under several criteria. So, let’s take a look at what you should know and expect from investing in a Tampa property.
Finding the perfect home at a reasonable price can be pretty challenging, particularly if you intend to buy your first home out of state. Sifting through the bottomless pit of property listings can easily defocus you and thus mess with your plans. Hence, it helps to set your sights on a single state or metro area to make the best out of your home searching efforts.
Why is Florida one of the best markets for first-time homebuyers.
Florida’s housing market has been consistently attracting homebuyers for years. One of the reasons why many people choose to buy their first property in the Florida metro areas is related to the steady demand and active construction of new housing units. This means that Florida offers housing for different home buyers with varying needs and budgets.
Reasons why Tampa is the best market for first-time homebuyers.
Out of all cities in Florida, Tampa is recognized as the most favorable for first-time home investments. One of the key reasons is the availability of properties priced below the average home value in the US. In the first quartal of 2021, the US median home value was $293,000, according to Zillow. It means that you can easily find homes in Tampa below this price point!
Yet this is just one factor that has profiled Tampa as the perfect city to invest in real estate. You will be glad to hear that Tampa is also one of the best cities in the US in terms of overall quality of life.
It is lovely beaches, warm weather, and friendly people that make Tampa an obvious choice for many new homebuyers. Tampa, FL, also offers many sports venues and outdoor activities to its residents.
However, aside from the laid-back lifestyle, Tampa Bay is also known for its good education as it houses several respected colleges. Yet, it is worth mentioning that there are occasional problems with traffic if you plan to commute from the downtown area to the suburban neighborhoods and vice versa.
Tampa is the best market for first-time home buyers for many reasons. One of them is that it is a lively city with a good quality of life index.
Which factors determine the best markets for first-time homebuyers?
Rankings are, after all, just that – rankings. They say nothing about the reasoning behind evaluating a market as favorable for homebuyers. Hence, we will look at what a market has to fulfill to be considered a good investment zone.
Some estimates show that as much as 46% of US homebuyers are actually buying their very first property. First-time home buyers should look into markets where they can find a home that will appeal to them and that they can afford. More often than not, good residential property markets are ones where sellers go out of their way to prepare their homes for sale
Furthermore, you want to purchase a property whose value will likely grow in the years to come. This means that you should look for neighborhoods that attract a lot of interest. You will be happy to hear that Tampa checks off this criterion. In fact, it is one of the most active real estate markets in the country.
Finding the middle ground between affordability and high demand can be quite a balancing act. That is why Tampa is a top-notch home purchasing zone – it satisfies both of these conditions.
Let’s look at other criteria used to evaluate how convenient housing markets are aside from these general characteristics.
- Median home values
Naturally, you want to purchase a home with a lower median value as a first-time homebuyer. As a result, your down payment will be noticeably smaller.
- Home value appreciation forecasts
As we have mentioned, your first home purchase should be a property with favorable home value appreciation forecasts. In this way, you will be sure that your wealth increases over time.
That is why first-time homebuyers are advised to invest in a housing market that has displayed steady pricing growth. Hence, if you ever decide to move out of Tampa, you will have no cause for concern. You will be able not only to sell your home quickly but sell it at a good price at that.
Also, home value appreciation goes up when the home seller provides proof of regular home inspections. A home inspection ensures that the property had been well-maintained before the purchase.
- High inventory-to-household ratio
This measure tracks how many properties are up for sale in relation to already occupied properties in the area. When there are plenty of homes on the market, you know there is also lower competition.
This is an ideal purchasing climate for first-time homebuyers because it enables you to choose from a number of homes rather than settle for something subpar. In Tampa, you won’t have to worry that more affluent or experienced buyers will sweep up everything of any value. As mentioned, Tampa is a high-interest zone where the construction of housing units does not lag behind the demand.
- Price cuts on properties
It means that some property listings in an area are subject to price cuts. Hence, this makes it easier for first-time homebuyers to purchase a home at an acceptable price.
All in all, these are the criteria used to evaluate the favorability of a housing market. As it satisfies all of the mentioned, Tampa is the best market for first-time homebuyers.
Bonnie Jackson is an economist and real estate agent. Her professional affiliations have enabled her to become an expert on real estate trends in the Tampa Bay area. She frequently collaborates with Best Movers in Florida on advising and relocating clients to many different cities in Florida.