Only 6 Weeks Of Housing Inventory In Tampa
A neutral housing market, favoring neither buyer nor seller, is about six months’ worth of housing inventory. Anything under six months is considered a sellers’ market. Tampa Bay has six weeks.
Norada's market overview was released in May of this year, with quite a bit of data being mined from 2019. So far, through the first seven months of 2020, my experience as a realtor in South Tampa has been that its research is right on point.
It is so rewarding to be able to work with both buyers and sellers, knowing that each will receive an advantage: Those who are looking to buy will get the benefit of prices that are still somewhat reasonable (despite the limited number of houses in inventory) and will almost certainly get the benefit of strong appreciation in the immediate future, while sellers will get the obvious benefit of being in a sellers’ market, with very few days on the market and a virtual guarantee of getting their asking price (if not a little more).
TAMPA REAL ESTATE 2020
Tampa’s housing market is growing steadily, its prices are still somewhat low and properties have a solid chance for big appreciation in the coming years.
Inventory is the key factor in home prices. A balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. There’s not two months of inventory in the entire Tampa metro area.
But before we dig in to 2020, let’s look back a moment. How was 2019 for the Tampa housing market? I’m so glad you asked.
Tampa was one of three cities leading the gain in the S&P CoreLogic Case-Shiller National Home Price Index, the gold standard for tracking appreciation.
Across the nation, home prices rose by 3.5% in November. Tampa came in with a gain of 5%.
Tampa’s median price for single-family-homes increased 6.4% over prior year.
Our December 2019 sales were $1.3 billion, an increase of 31% over December 2018.
Granted, home prices are expected to flatten nationwide, but Tampa continues to be good for real estate, thanks to continuing employment growth. Our current 6-7% annual appreciation rate puts Tampa in the top 10% nationally. For sellers, a nice profit is on the horizon.
FORECAST 2020-2021
Little Big Homes estimates an 84% probability of rising home prices in Tampa through the third quarter of 2021. Mind you, the market could tip toward buyers if the housing inventory increases to six months instead of six weeks― but that’s not gonna happen anytime soon.
Buyers like paying about 90% of asking price, while sellers naturally prefer to receive 100%. On average, Tampa sellers are getting 98.9% of the asking price, and that is expected to continue. Let’s take a look at some of the reasons why:
Fast Growing Metro Area
With a great overall quality of life, busy downtown and wide range of eateries and tourist attractions, Tampa is one of the fastest-growing metropolitan areas in the country.
Increasing Home Prices
Prices in Tampa are climbing fast, but they are still affordable compared to other real estate markets. The Tampa market is predicted to continue flourishing through the foreseeable future.
Job Growth
Lots of jobs is a sure way to boost a real estate market. Tampa's real estate market has experienced growth consistent with the number of people moving to our thriving metropolis.
Booming Economy
Tampa is home to several Fortune 500 companies, and thousands of small businesses and entrepreneurs, which is a good sign for future economic growth. Tampa’s economy is quite diverse with financial services, STEM, healthcare, research, education, tourism, beaches and military bases all making significant contributions.
Cost of Living
People from all over the country are thinking about moving to Tampa right this second. One of the reasons is the low-ish cost of living compared to other cities.
Tampa’s cost of living is 5% lower than the national average.
Housing expenses are 23% lower than the national average although utility prices are 16% higher.
Healthcare in Tampa is 2% lower than the national average.
The Weather
The year ‘round outdoor nature of life in Tampa has always been, and will always be, a huge attractor. If you can survive the four months between June and September, you’ll be rewarded by eight pretty glorious months.
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
