Are you considering relocating to Tampa Bay, or are you ready to sell but unsure about the real estate market? Are you wondering if you should invest in a property now or wait until 2023? The real estate market can often be volatile and complicated. Fortunately, this guide will attempt to break down the complexity. Read on to find out what’s going on in Tampa Bay now and what you can expect in 2023!
- Tampa Bay real estate market
- The real estate market is cooling down
- Rising appreciation rates
- What’s next for buyers?
- What’s next for sellers?
- Consult an experienced real estate team in Tampa Bay
For the past few years, many areas of Tampa Bay have been experiencing a robust real estate market, with many homeowners eager to sell their homes and buyers and investors wanting to get in on the action. The Tampa Bay area has been experiencing a thriving job market and a strong economy, which has contributed to increased buyer demand, a growing population, and a steady increase in home values. At the start of 2022, Tampa Bay was even named the top housing market in the country.
In the last quarter of 2022, it appears that Tampa Bay is still a solid seller’s market. In particular, the real estate markets in the coastal cities of Tampa, Saint Petersburg, and Clearwater have all been highly desirable, with reasonably significant home price increases. Median home prices have increased by 17% in Tampa, 20% in Saint Petersburg, and 22% in Clearwater year-to-date. It is only in nearby Downtown Lakeland that the median home price has experienced a slight decrease of 1.4% since last year. It is important to note that fewer homes are being sold across all four of these cities than in previous months – and many are even selling for less than the listed price. Though that could point to the season as the real estate market tends to slow down during the winter, it could also be a sign that the Tampa Bay housing market is finally cooling down.
After many years of a strong surge in the real estate market, basic economics indicates that the market will start cooling down. Compared to years past, many experts are noticing that there is slightly less demand for housing in Tampa Bay today. It is no longer the hectic world it used to be with multiple offers on a single home. In addition, inventory in Tampa has increased by 134%, indicating less buyer interest. This means that the market will most likely start turning. As inventory rises and home prices decrease, the market becomes more favorable to the buyers waiting in the wings for the right time to make an offer on luxury homes in Tampa Bay.
This slow shift from a seller’s market into one that might be more advantageous for buyers is due to many reasons. For one, in mid-2022, the federally mandated interest rates were increased by .75%, which has pushed some buyers out of the market due to the rising housing costs. If the interest rates continue to rise well into 2023, the market will undoubtedly shift, and buyers will get priced out even more. However, many home buyers will still be attracted to Tampa Bay real estate due mainly to the thriving economy, excellent job market, and ideal location.
Despite the real estate market experiencing a turn, home values are rising and are expected to keep increasing. As long as the economy and job market remain strong and there is some demand, home values will continue to rise. For example, over the past 20 years, homes in Tampa have experienced a nearly 273% appreciation rate, growing at 6% annually. Saint Petersburg houses have increased in home value by 290%, and Lakeland homes by just 206%. These high appreciation rates indicate that the luxury homes in Tampa Bay have been a successful investment. As long as the economy and job market continues to thrive, home values will continue to increase in many parts of Tampa Bay.
As the real estate market shifts, people interested in buying or investing in Tampa Bay luxury homes might have an easier time. With less competition and greater inventory, buyers will likely have more options. For instance, home buyers and investors will not have to compete with multiple people for a single home. Instead, buyers might even be able to purchase homes for less than the listed price. Buyers might also find they have greater negotiating power as homeowners aim to sell their homes as quickly as possible to capitalize on the rising appreciation rates. Ultimately, buyers should proceed with caution and strategize a plan. The market is shifting, but it is still a strong seller’s market with increased competition. That is why buyers need to work with an experienced real estate agent to help determine the right time to buy a home.
Because it is still a strong seller’s market with increased demand and rising home prices, it is an excellent time for homeowners to consider selling their luxury homes. Considering that the market is shifting to favor buyers more, it might be wise for sellers to capitalize on their real estate investment now. By selling a luxury home now while the home prices and demand are high, sellers can capitalize on their real estate investment to get top dollar. However, as buyers are presented with more options, it can be helpful to strategically develop a marketing and negotiation plan to place your home in the best light possible.
Real estate markets have been known to change swiftly. Whether you wish to buy or sell a luxury home in Tampa Bay, your needs are unique. That is why you need to work with an expert team of realtors who can guide you on everything from determining the right timing for buying or selling to crafting innovative marketing and negotiation strategies. Whether it remains as a seller’s market or it turns to favor buyers more, one thing is for sure – by working with an experienced team of agents, you will give yourself the best chance of achieving a successful real estate transaction!
Are you interested in buying a new home in Tampa Bay? Do you want to start the process of listing your home for sale? Then, you need to schedule a consultation with the Master Home Finders of Tampa real estate – the expert real estate agents at The McIntosh Group! This extraordinary group of realtors will use innovative technology, an extensive network of connections, and unparalleled knowledge of the local market to help you find a dream home or sell your home quickly and for top dollar!