Interesting article - Death of the Starter Homes (Tampa, Sarasota: hardwood floors, bank owned)

[Sunshine Rules]

The Death of the Starter Home - DailyFinance


Starter homes are disappearing from the local Sarasota market for all the reasons the author mentions -- being snapped up by investors to use as rentals, falling into functional disrepair due to age and builders aren't interested in catering to the $200k and under home buyers.

But the author left out one other variable -- the starter buyers with starter budgets don't want starter homes. Thanks to home eye candy networks such as HGTV, first time home buyers often expect at least 3 bedrooms & 2 baths that are fully updated with high end finishes and features, the home has to have an open floor plan, hardwood floors and a 2 car garage, in excellent school districts and priced under $200,000. To achieve what they're looking for many of these first time buyers find themselves looking at homes in communities 45 miles or more from their current location & jobs, becoming permanent commuters in the search for their vision of the American dream.

Anyway, the article does offer some interesting statistics about home ownership trends.

[Headacher]

45 miles or more from their jobs? That's insane. I'm currently 8 miles from where I work and I can't stand driving that far!

[justNancy]

Originally Posted by Sunshine Rules

[url=http://www.dailyfinance.com/2015/08/11/death-of-starter-homes/?icid=maing-grid7%7Chtmlws-sb-bb%7Cdl30%7Csec1_lnk2%26pLid%3D368585882]The Death of the Starter Home - DailyFinance[/url]


Starter homes are disappearing from the local Sarasota market for all the reasons the author mentions -- being snapped up by investors to use as rentals, falling into functional disrepair due to age and builders aren't interested in catering to the $200k and under home buyers.

But the author left out one other variable -- the starter buyers with starter budgets don't want starter homes. Thanks to home eye candy networks such as HGTV, first time home buyers often expect at least 3 bedrooms & 2 baths that are fully updated with high end finishes and features, the home has to have an open floor plan, hardwood floors and a 2 car garage, in excellent school districts and priced under $200,000. To achieve what they're looking for many of these first time buyers find themselves looking at homes in communities 45 miles or more from their current location & jobs, becoming permanent commuters in the search for their vision of the American dream.

Anyway, the article does offer some interesting statistics about home ownership trends.

Are you referring to a specific market like Sarasota County? I've read many articles that say the trend is moving toward building and buying smaller homes and passing on the luxuries.

[mr&mrssunshine]

TV has much to answer for. yes it produces 'desire' beyond reality.

I had someone call me Saturday to enquire about a home I am building
"how much"
"$299900"
".................silence....ah ok"
"how much were you expecting to pay"
"our max is $175000"
" Im very sorry you wont find a brand new home for that"
" huh well we have seen some at that"

There are 13 homes in Rotonda $175000 or under, the NEWEST is a 94 bank owned in need of some real $$$$ repairs


get real

[gypsychic]

People these days are totally unrealistic......

[dpbarr2000]

A new single family home or detached villa with the upgrades most buyers want, such as stainless and stone and 18 inch ceramic tile, is going to start around $250,000 and go up from there. That doesn't include lot premiums. The builders have more demand for this price range than they can handle.

[Nancy in Nokomis]

I watch househunters all the time and cant believe what those young couples are complaining about - so spoiled - and then they wonder why they default a few years later when one of them loses a job.

[imagardener]

My nephew and wife bought their first home in Tampa in the $300k's. He's in Reserves and college part-time, she has a good job. Amazed me because when I was that age we could only afford 100k (30 years ago) and waited til we could get a mortgage without having parents co-sign. Times have changed.

I don't think most first home buyers are buying at this price however but who knows. Statistics and news you read online can be big liars (no offense to OP). I'll bet a lot of younger owners will use this article to get their parents to choke up some cash so they can buy a more expensive home than the parents have.

[justNancy]

I wouldn't be too critical of people who aren't familiar with the prices in this area, although it sounds as if they haven't done their homework. Prices vary around the country, even around the state. If you talk to someone from Boston, you'll probably get the opposite reaction like "Wow, $250,000 is so cheap!" It's all relative.

[kiggy]

Originally Posted by imagardener

My nephew and wife bought their first home in Tampa in the $300k's. He's in Reserves and college part-time, she has a good job. Amazed me because when I was that age we could only afford 100k (30 years ago) and waited til we could get a mortgage without having parents co-sign. Times have changed.

I don't think most first home buyers are buying at this price however but who knows. Statistics and news you read online can be big liars (no offense to OP). I'll bet a lot of younger owners will use this article to get their parents to choke up some cash so they can buy a more expensive home than the parents have.

Any parent who would co-sign for a mortgage for their kids needs intensive psychological treatment. And I bet that $100K 30 years ago would be about $300,000 now.