Here's Just How Much South Tampa Homes Have Appreciated
Black Knight reports a 25-year average annual appreciation of 3.9% nationwide. Spoiler alert: Tampa’s doing way better than that.
In 2001, my husband David and I bought our first home, a sweet little 3-bed, 2-bath, 1300-square footer on San Pedro, for $179k. It was built in 1945, and in the 56 years leading up to our purchase, there had been only two owners: the original owner, and the neighbor who bought it, added a master bedroom, and sold it to us.
We lived there in newly-married child-free bliss for four years, not doing a thing to the house except accidentally painting it purple and installing a big wooden deck that David and a friend built. We sold it in 2005 for $284k, turning a tidy profit of $105k in a mere four years. Easy money, baby.
But if you lived in Tampa in 2005, you know what’s coming next. About five minutes after we sold it, the bottom fell out of the real estate market. Like completely out. So the hapless couple who bought it from us took a bath right? Wrong! They lived in the house for 11 years, eventually selling it in 2016 for $375k. It may have taken a while longer, but they turned a handsome $91k profit upon selling. Better than a sharp stick in the eye!
By 2016 the house was 71 years old, and the folks who had just bought it set about spiffing it up. They updated the kitchen, refinished the floors, changed out the light fixtures— all the things that make a big impact on buyers. They sold it this year for $451k, earning them a profit of $76k in just four years.
The moral of this story? Tampa real estate is a fantastic bet. Even through the roughest period since the Florida Land Bust of 1925, we’ve seen appreciation of 5% a year over the last 25 years, against a national average of 3.9%.
These days, many homes are getting multiple offers and going under contract in a matter of days. And while that’s great news, the even better news is these trends are expected to continue well into the foreseeable future. With Tampa’s ever-expanding metro area, continued population growth, diverse economy, comparatively low cost of living, and relatively affordable home prices, our real estate market is poised to continue its winning ways, posting rich rewards for home buyers and home sellers alike for many years to come.
Hooray, real estate!
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
