First-time homebuyers can be nervous about the prospect of entering into what is likely to be the largest financial transaction in which they have ever been involved. And, with the "housing crash" of 2007-2008 still somewhat fresh in the minds of most Americans, even more fear can creep in. That is why many potential first-time homebuyers approach the residential real estate market cautiously, and most would be wise to do so only after they get the best information about the current market conditions in their area.
For potential first-time homebuyers in the South Florida area, a recent report detailed some not-so-great news. According to the report, the South Florida residential real estate market is particularly difficult for first-time homebuyers. The main reason? Affordability.
The report indicates that rising home prices in the South Florida area, particularly in the Miami area, may be pricing first-time buyers out of the area. Many of our readers are probably familiar with previous posts here that have detailed the strength of the real estate market in South Florida relative to other major metropolitan areas. Now, it seems, that strength may be too much for anyone who is looking to get into the residential real estate market for the first time.
However, that doesn't mean that there aren't opportunities for those who are fixed on getting a new home in the South Florida area. As the recent article noted, financing is still available for most people. But, for those who may be thinking about pushing the issue in South Florida, it may be more important than ever before to do so only when armed with all of the right information about real estate concerns.
Source: Sun Sentinel, "South Florida not so favorable for first-time homebuyers, study finds," Paul Owers, July 22, 2016