Are you buying your first home in Miami? First you should know this

Getting your own home in Miami or South Florida, United States has become a problem for many first time buyers who have saved for years for a property with at least two rooms.

In fact, data from the National Association of Realtors (NAR) shows that first-time buyers’ share of total home purchases in the United States in 2022 fell to an all-time low of 26%.

Specifically, in Miami-Dade County, home prices are around $500,000, which is why the number of clients interested in paying that amount to purchase their first home has dropped dramatically in the past year.

Through various testimonials from potential buyers, it is known that the couple’s combined salary of $120,000 a year is hardly enough to buy a home.

Meanwhile, Miami-Dade’s housing stock remains tight with a March supply of 9,880 units, including apartment towers, townhouses, and townhouses, but well below the pre-pandemic figure.

For newcomers and foreigners who decide to settle in the United States, the situation becomes even worse, which is why experts in the sector recommend cutting down on credit card debt before you start looking for a home. Another piece of advice from sellers is to provide six months of income and make sure you have a credit score of at least 660.

How do you buy a home in Miami, Florida?

Typically, a worker must save for years to secure a down payment on a home, which is why the average age of first-time homebuyers in Miami-Dade is over 32. Currently, the best deals are on condo towers in Kendall and Dadeland and on homes in Westchester and West Miami.

Experts also recommend choosing a real estate agent, looking into down payment assistance programs, and choosing a lender, who is responsible for preparing underwriting documents and setting the mortgage interest rate.

Another effective avenue may be through the Miami-Dade Housing Finance Authority, a state agency that offers down payment and closing cost assistance to first-time homebuyers in the area.