Tampa Bay Real Estate Market Expected To Be Nation’s 4th Hottest
Sunbelt cities will continue being hotter than the nation’s largest housing markets. Economists and real estate experts expect Austin to outperform the national market by the largest margin, followed by Phoenix, Nashville, Tampa and Denver.
The Q4 2020 Zillow Home Price Expectations Survey, conducted quarterly by Pulsenomics, asked economists, investment strategists and real estate experts for their predictions about the US housing market. The Q4 survey also asked about their expectations for 2021 home value growth in 20 large markets.
Austin was expected to be hottest in last year’s survey, a prediction that proved true. Its median home price was up 24% in 2020—the steepest increase among the 50 largest US housing markets. Sixty percent of those surveyed also said Tampa’s growth would outperform the national average in 2021.
Tampa is an affordable option compared to the expensive coastal areas that have led home appreciation ranks in recent years, providing value for those looking to take advantage of low mortgage rates to buy their first home or move up in the market. For the most part, the top five are also sunny locales. According to the NOAA, all but Nashville rank in the top half of US cities for their annual amount of sunshine.
The pandemic has only accelerated the trends we saw coming into 2020. Sunbelt destinations are magnets thanks to relatively affordable family homes, booming economies and sunny weather. Record low mortgage rates, increased demand for living space and a surge of Millennials buying their first homes will keep pressure on these markets for the foreseeable future.
Those looking for homes—especially their first—will enter a competitive market. Getting preapproved for a mortgage and working with a trusted agent are the best tips shoppers can leverage to get a leg up.
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
