The Average Income Needed To Buy A Home In Florida
There’s a new study about the average income needed to buy a home in Florida. The study is really eye-opening. The study comes from Redfin. Redfin’s mission is to redefine real estate in the consumer’s favor. The study found that homebuyers need to earn $115,000 to afford a median-priced home in the United States. This is more than ever before. What’s even crazier is last year all you needed to make was $99,342. So, in one year it’s gone up by $15,000. The study also found that the typical American household earns about $40,000 less than the income needed to buy a median-priced home.
The Median Home Price In Tampa
In Tampa, the income required to afford a median-priced home is $103,613. That’s a 17% increase from last year. The median-priced home in Tampa is $379,900. Additionally, your monthly mortgage payment would then be $2,590. Tampa is not the most expensive Florida city to live in. Miami is the most expensive followed by West Palm Beach.
Redfin says about first-time home buyers, “Buyers who are selling a home to buy another one are in a better boat than first-timers because they have likely built up equity in their current home, which takes a bit of the sting out of soaring monthly payments. The caveat to the caveat is those who bought at the height of the pandemic-era market with an ultra-low mortgage rate and need to sell now: Not only are they giving up a low rate, they also may have lost money on their home.”
Despite the average income needed to buy a home in Florida being six figures, people keep moving to Florida and Tampa in droves. We bet they wish they had some realistic advice before making the move. Even though we do live in paradise, it comes at a hefty price.
[SOURCE: WFLA]
Florida Cities Where Homes Are Selling Below Asking Price
It’s a tough market to become a new homeowner. But on the bright side, there are some Florida cities where some homes are selling below their asking price. Some are even a quick drive from the Tampa Bay area. We got the list from Stacker, who analyzed data from Redfin. Their data shows sales from the month of December 2022.
The average 30-year fixed rate mortgage sits just above 6%. Even if it trends a half of a percentage point, it can have an outsized impact on the monthly payments required for a mortgage. Before mortgage rates started spiking, homebuyers were able to lock in rates that are far more affordable than what’s suddenly on offer in today’s environment. It also doesn’t help that sellers aren’t exactly coming down on price. In a lot of metro areas, home prices are still increasing.
And yet there are still metro areas where homebuyers are finding homes selling for below asking price.
One thing that could skew this data is something that’s happening here in many parts of Florida. People are ‘first listing’ at a ridiculous price just to see if they get lucky. If they don’t, 2 weeks later they lower the price. The point being, if you’re looking to buy you should be very skeptical of that ‘first listing’ price. After viewing the home, see if you can make a reasonable offer, who knows, you could get lucky!
Our list just includes the cities in Florida where homes are likely to sell under asking price. If you’d like to see how they match up to other metros in the country, click here for the full study.
Here are the Florida cities where homes are selling below the asking price.
Kevin is a member of Tampa Bay‘s Hometown Morning Krewe on 995 QYK. He has been with the station for 25 years, is a Tampa native, and went to Jesuit High School and USF. Go Bulls!. He is passionate about all things Tampa Bay. Kevin writes articles on the ongoing road projects around the Tampa Bay area, awards that Tampa Bay cities and businesses have won and country music happenings around the Bay area. He is always doing many things with his wife and kids. He loves to read books and play video games in his spare time.