Tampa Housing Market Trends
With a dense population and strong economic linkages, Tampa’s housing market is vital to Florida’s. Tampa real estate is Florida’s cheapest. It’s one of the nation’s hottest rental housing markets. Closed Sales, Year-to-Date sales, and all-cash transactions have decreased in the Tampa property market, indicating a reduction in investor activity.
Single-family home Median and Average Sale Prices have climbed. The drop in new listings has increased inventory (Active Listings) and months supply of inventory. Tampa’s home market has become more buyer-friendly with greater availability and less competition.
This gives Tampa homebuyers a wonderful chance. Sellers may need to compete to attract buyers. To succeed in the Tampa housing market, you need a knowledgeable real estate agent.
Tampa Home Sales (Single-Family Homes)
Year-to-Date Tampa home market sales are down 24.6%, while Closed Sales are down 19.4%. All-cash sales have also dropped 35.5% year-over-year, indicating investor activity. Total Dollar Volume fell 15.6% to $1.5 Billion, and New Pending Sales down 5.5%. Florida REALTORS® reported 26.5% of Closed Sales in the month were Cash Sales. This percentage shows investor involvement in the Tampa housing market.
Tampa Housing Demand & Prices (Single-Family Homes)
Single-family home prices in Tampa have climbed by 3.1% to $389,995 and 4.8% to $478,730. Median Contract Time is 39 days, increasing 457.1% year-over-year. This statistic measures the duration between listing and sale contract signing. Median Sale Time is 83 Days, up 84.4%.
Tampa Home Supply (Single-Family Homes)
New listings in Tampa
New listings in Tampa’s home market are down 15.5% year-over-year. However, Inventory (Active Listings) has climbed 157.6% and Months Supply of Inventory is 1.9 months, up 216.7%. Given the present sales pace, it would take this many months to sell the current inventory of properties.
A six-month supply has typically moderated price appreciation, whereas a lesser supply accelerates it. Thus, 5.5 months of inventories defines a balanced market. Seller’s markets have inventory under 5.5 months.
Housing Market Forecast for Tampa 2023
What forecasts are there for the Tampa real estate market in 2023? Let’s examine the pricing patterns that Zillow has been tracking for the previous few years. One of the strongest long-term real estate investments in the United States historically has been Tampa. According to the Zillow property Value Index, property values in the Tampa-St. Petersburg-Clearwater metro area have increased by almost 9.1% over the past year.
ZHVI reflects all available housing stock, not only those that are listed or sold during a particular month. Homes in the Tampa Bay region currently cost an average of $358,017. It shows that 50% of the area’s housing stock is valued at more than $358,017 and 50% is valued at less. (adjusting for seasonal fluctuations).
Since there is a shortage of homes in Tampa, buyers are frequently compelled to compete, which frequently leads to higher prices and/or speedier transactions that typically benefit sellers. In other words, sellers have the upper hand in pricing discussions over buyers since demand outpaces supply. More houses are under contract than there are buyers who are actively looking.
Additionally, it would take roughly six months for the supply to reach zero in a balanced real estate market. If the housing supply rises to more than six months’ worth of inventory, the Tampa market may slant in favor of buyers. And it won’t happen anytime soon. Due to a continuing supply and demand imbalance, the Tampa real estate market is still strong for sellers.
The housing outlook for Tampa and the Tampa MSA is provided below. Over the past year, home appreciation has been at an all-time high.
Home values in Tampa-St. Petersburg-Clearwater metro area have increased by 9.1% in the last 12 months.
The housing market prediction for the Tampa MSA through February 2024 is optimistic.
According to Zillow, between February 2023 and February 2024, they will increase by 2.3%.
Industrial Market in Tampa
As Tampa’s strong demand continues to exceed supply, both warehouse/distribution and office/flex industrial space are reporting vacancy rates below 5%. Fundamentals like these have allowed landlords to drive up industrial rents in Tampa to record highs, with increases in Hillsborough and Pinellas counties’ rental rates of 18% and 28%, respectively, year over year.
The Office Market in Tampa
According to a recent survey from Cushman & Wakefield, tenants in Tampa are making a beeline for brand-new office buildings that provide a wide variety of enticing amenities. Through the first half of 2022, approximately 1.8 million square feet worth of new leases have been negotiated, which is nearly 25% higher than was signed during the same time period one year ago.
Daniel