Market Forces New Buyers Into Suburbs

Tampa_Realtor_2013First-time homebuyers might long to buy a house in a hip, urban neighborhood in South Tampa, but area Realtors say the competitive seller’s market has forced younger buyers to settle in the suburbs.

Rae Catanese, a Realtor with RE/MAX Bay to Bay Real Estate Agency, said the prices in South Tampa are higher to begin with — and that’s before buyers get into so-called “bidding wars” that can drive prices even higher. Without the cash, many younger buyers can’t compete.

“It’s a really unhealthy market right now,” Catanese said. “We are down to three months of inventory in Tampa. A healthy market is six months of inventory and an equal number of buyers and sellers.”

Catanese, who works with clients throughout Hillsborough County, said the average sales price of homes in South Tampa is about $500,000.

“You have to make money to be able to afford a home in that price range,” she said. “Younger people are sticking to condos and townhomes.”

But even some condos in South Tampa are out of reach for first-time homebuyers due to investors making cash purchases.

 

Source: TBO

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