Tampa housing market: Everything you need to know
Tampa, nestled on Florida’s Gulf Coast, is renowned for its outdoor lifestyle and breathtaking surroundings. As Florida’s third-largest city, it’s also one of the fastest-growing. In recent rankings, Tampa secured a spot in the top five large markets on Bankrate’s Housing Heat Index and was hailed as one of the most sought-after destinations for relocating homebuyers in 2022 by Redfin. This surge in popularity has led to an increase in home prices. Whether you’re considering buying a home in this thriving city or contemplating selling to capitalize on its growth, it’s essential to understand the nuances of the Tampa housing market.
Tampa Housing Market Overview:
The Tampa real estate market offers a mix of advantages and considerations. While it’s generally more affordable compared to Florida’s overall housing market, prices have been on an upward trajectory, surpassing the national median price. Nevertheless, there’s good news for buyers – nearly 30 percent of listings in April experienced price reductions, and homes are staying on the market longer, providing more options for potential buyers.
Tampa Housing Trends and Stats:
As of April 2023, the median sale price for a home in Tampa stands at $417,500, marking a 4.4 percent year-over-year increase, and surpassing the national median of $388,800. Homes spent an average of 22 days on the market in April, indicating a relatively fast turnover, albeit notably longer than the 7 days seen the previous year. In April, only 633 homes were sold, representing a 16.7 percent decrease year-over-year. The sale-to-list ratio was 97.6 percent, signifying that homes typically sell just under the asking price. Closing costs in Florida typically amount to around 2.3 percent of the home’s purchase price.
Should You Buy or Sell in the Tampa Housing Market?
For Home Sellers: Selling a home in Tampa presents a mixed scenario. While sale prices have increased, the volume of sales has declined year-over-year. Homes are also taking longer to sell, with today’s high mortgage rates deterring some potential buyers. However, Tampa continues to attract new residents, ensuring a steady stream of prospective buyers. It’s crucial to work with a local real estate agent to accurately assess your home’s value and set an appropriate asking price for a smooth sale.
For Homebuyers:
If you’re in the market for a home in Tampa, several factors are currently in your favor. Homes are spending more time on the market, providing buyers with added flexibility. Additionally, most homes are selling slightly below the asking price, granting buyers more negotiating power than in previous years. However, it’s worth noting that Tampa’s homes are already pricier than the national average. Getting preapproved for a mortgage can help define your budget and demonstrate your seriousness to sellers. Consider the overall cost of living compared to your previous location as well.
Tampa Housing Market Predictions:
While rising mortgage rates and home prices are causing a slowdown in sales, experts do not foresee a housing market crash in Tampa or nationwide. Markets often experience corrections, and Tampa’s desirability continues to draw buyers, particularly from out of state. According to a recent study by Knock, the market may shift more in favor of buyers by the end of 2023, but it is expected to remain robust.
Conclusion:
Navigating the Tampa housing market is made significantly smoother with the assistance of a professional real estate agent familiar with the area. Whether you’re a buyer looking for the perfect home or a seller aiming for the best deal, a local agent can be invaluable in achieving your real estate goals.