The Tampa housing market is currently experiencing an unprecedented low in available inventory, presenting unique opportunities and challenges for both buyers and sellers. With demand high and supply scarce, experts suggest that current conditions might not be seen again for a long time, making it a pivotal moment for real estate decisions in the region.
Key Takeaways
- Record low inventory levels in Tampa.
- Rising home prices, with Tampa leading national appreciation.
- Historically low interest rates.
- Strong economic conditions are expected to persist.
- High homeowner return on investment.
The Current Market Landscape
Homebuyers in Tampa are facing a significant challenge in finding properties that meet their exact needs due to an all-time low inventory. However, patience is advised, as even a short-term investment of five years can build equity, potentially enabling the purchase of a dream home later. For sellers considering downsizing, cashing out now and renting temporarily could be a strategic move while awaiting the ideal next home.
Top Reasons to Act Now
- Unprecedented Low Inventory: National inventory levels are at their lowest since at least 1983. In Tampa, this scarcity is driven by a strong job market and high demand, with insufficient supply to meet it.
- Appreciating Home Prices: Tampa is among the top three cities experiencing the fastest home price appreciation, as indicated by the S&P CoreLogic Case-Shiller National Home Price Index. Home prices nationally rose 3.5% in November, with Tampa showing a 5.0% increase.
- Favorable Interest Rates: Thirty-year fixed-rate mortgages are at a three-year low of 3.45%, significantly lower than a year ago, making homeownership more affordable.
- Stable Economic Outlook: Experts predict that current strong economic conditions, including a robust labor market and stable interest rates, are likely to continue, with no immediate signs of a recession.
- High Return on Investment: The average U.S. home seller profit reached a 13-year high of $65,500 in 2019, indicating strong financial returns for homeowners.
Hillsborough and Pinellas County Market Snapshots
In Hillsborough County, January saw 1,250 homes sold with a median price of $257,500, a 7.4% increase year-over-year. Homes are selling quickly, with less than two months of inventory available, a nearly 43% decrease from the previous year. Properties are selling in under 60 days.
Pinellas County mirrors this trend, with 862 homes sold and a median price of $267,000. Home sales in Pinellas increased by over 23%, and inventory is shrinking at an even faster rate compared to Hillsborough. The time homes spend on the market is also comparable to Hillsborough County.