Afraid to BUY a Home in Tampa Bay, FL? Let's look at data.

My most recent interactions with buyers or potential buyers in the Tampa Bay market, is fear.  Any change is always scary, but in a market where you feel like the underdog, that feeling of fear can be escalated.  The most powerful tool we can look at in the marketplace to help minimize that fear is data.  Data shows what is the reality of our current market.  Data shows the reality of where our rates currently are in comparison to historic rates.  Data shows the options between how much you'll spend to rent and pay off your landlord’s mortgage vs. investing in your future.  Today I am going to share some data to hopefully help ease your fear. While the market has softened since 2022 for buyers with almost double the inventory, prices are still high - especially for a first-time home buyer.  Even with higher prices and rates, I think it is important for first-time buyers to get into the market as soon as they can with the projections for the market demand and value increases over the next 10 years.
The three biggest fears I'm hearing repeatedly this spring from buyers in Tampa Bay are:

1. I'm afraid to buy at the peak of the market.
2. I'm afraid my interest rate is too high.
3. I'm afraid my payment is going to be too high.

I will address all 3 of these fears with actual data of why you shouldn't fear the current market.

First - if I had $20 for every potential buyer that told me they are going to wait until prices come down, I could probably stop working lol.  It's sad to see and I give my warning when I hear buyers say this but just last year I had quite a few saying the market has peaked and they are waiting - well now prices are even higher and they can't afford to buy anything close to what they would have had a year ago.  The market is in an INVENTORY SHORTAGE - we have more demand in Tampa Bay than we do homes and the projection of Millennials coming to market that will buy in the next 5yrs show that this demand is going to increase, further raising prices.  My advice is to purchase this year before the market further out prices you, especially if you are a first-time home buyer.  First time home buyers will have the hardest time in the projected market, so it's important to buy into it as soon as possible.

Second - buyers waiting for interest rates to come down are just not realistic at this time.  There is no projection for rates to lower significantly anytime soon, and we are lower than the historic average of rates.  People that purchased over the last few years got extremely lucky to secure rock bottom rates, but buyers should not hold out for these types of rates again - it is unlikely we will see them.  We were in a once in a lifetime pandemic which skyrocketed inflation.   If rates do reduce in the future, you can always refinance.

Lastly - for buyers that are afraid their payment is going to be too high for them to afford - this is a GOOD reason to be afraid, but not good reason to avoid buying.  I highly suggest buyers stay within a comfortable payment range and readjust their purchase price.  You often can find a suitable home either slightly smaller or slightly farther that still would suffice and then keep your payment in a comfortable range.  But with home prices rising - I think it's good to get into the market NOW at an affordable point and then later upgrade when your financial situation improves to match your desires.  Your home value will continue to increase with the market and help you not fall further behind.  

If you are thinking about buying, I would love the opportunity to sit down with you and discuss how we can help.  Consider the inspection one of your first investments into your new home and potentially one of the most important investments to determine if it’s going to be your new home.  This investment will identify potential issues, repairs needed, ensure safety, allow us to negotiate items of repair, and help you plan for future maintenance.  As a top Tampa Realtor, we’ve helped hundreds of families through the buying process and look forward to helping you too! We help minimize the stress with our systems and look forward to helping you find your dream home.  There is no joy like seeing our clients find a home they love (it’s one of my favorite parts of my job).  If you are thinking about selling in Tampa Bay, please give me a call 813-758-3063.  Also, if you are not local to Tampa but would like some advice, I'm happy to chat and can potentially help team you up with one of my RE/MAX trusted referral partners in your area.

Alison Connors - RE/MAX Action First 813-758-3063