Today, about half of all homebuyers are first-time homebuyers. These buyers are often deciding important questions about putting down roots, starting a career and a family, long-term home values, and qualifying for a mortgage. So, it’s not surprising that Tampa ranked as the #2 market for first-time homebuyers in the U.S.
Why is Tampa a Great Market for First-Time Homebuyers?
In a report released by Zillow in May 2017, the top two markets for first-time homebuyers were in Florida. Orlando took the top spot, with Tampa ranked a close second, because of their affordable homes and available inventory, resulting in an environment making it easier to qualify for a mortgage and make a down payment.
Zillow’s analysis to determine the top markets for first-time homebuyers was based on five metrics:
- Lower median home value for a more affordable down payment.
- Strong home value forecast as an indicator of building equity.
- Higher inventory-to-household ratio to capture available supply.
- Shorter breakeven horizon to show a financial advantage of buying over renting.
- Greater share of listings with price cuts to indicate a less competitive market.
As a result of lower prices and more inventory, compared to many other major U.S. metros, Tampa homebuyers are in a less competitive environment, while also getting more house for their money, and qualifying for a mortgage with a lower down payment.
Furthermore, first-time homebuyers in the Tampa market have the opportunity to build equity while investing in a larger home, lending itself to better financial planning and a better quality of life.
Tampa Bay is Perfect for Millennials Buying Their First Home
Millennials aren’t purchasing homes in the numbers of past generations, because of several factors, some of which are out of their control.
“As millennials reach the typical home buying age, they are coming into a tough housing market with low inventory and lots of competition,” Zillow Chief Economist Dr. Svenja Gudell explains. Many millennials have rented for years, which has depleted their bank accounts, resulting in the inability to pay a large down payment on a home.
Many millennials, therefore, are moving to metros like Tampa Bay, which offer the desired lifestyle with a more affordable housing market. And because home prices are lower compared to other major U.S. metros, millennials can buy a better home, with a lower down payment, and a lower monthly payment.
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers and homeowners in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing, and help clients with HARP refinancing to lower their monthly mortgage payments.