People who bought their first home in Palm Bay, Fla., might be feeling stuck. While the median price of a starter home is $148,000, a typical trade-up home sells for $329,900, more than twice the cost. The city also has few available homes on the market and a number of homes that are still underwater.
Realtor.com ranked 10 places where trading up is toughest, and Palm Bay ranked first. The list was based on price difference, affordability, supply, days on market, average length of homeownership, and the percentage of homes with negative equity.
Other markets on the list include Omaha, Neb., Detroit, Seattle, and Dallas.
The reasons for the drop in repeat buyers are different for every market, but familiar themes crop up across the nation. New home construction hasn't caught up with demand, exacerbating the lack of homes for sale; there's strong competition from investors and foreign buyers who can pay in cash in the most desirable markets; and many buyers simply haven't recovered enough equity in their homes since the housing crash to finance a more expensive mortgage.