Tampa Home Values To Increase Again
The most over-discussed topic of last year was Tampa’s housing market. But after having been America’s 4th hottest market of 2021, and the hottest market of 2022, we have fallen out of the top 10 in 2023. It’s kind of a relief tbh—#1 is a lot of pressure. Here’s what we can expect this year.
HOME VALUES
Tampa’s average home values are up 12.3% over this time last year. We continue to outpace the rest of the country, which is up an average of 8.7%.
Other markets with huge pandemic-era increases have been slowing down, with some markets even experiencing contraction, but not us. Our home prices are predicted to continue rising, albeit at a slower pace, through 2023.
CONTRIBUTING FACTOR
Hillsborough County is expected to add another 125,000 residents by 2026. A housing deficit, largely due to high population growth, is pushing prices up.
Rising interest rates have not been discouraging buyers from out of state from relocating to Tampa, so sellers have not had to significantly drop prices.
BOTTOM LINE
Climbing interest rates have been slowing down demand a little. But inflation has also calmed down since its peak in 2022, so interest rates will eventually come down.
In the meantime, with higher interest rates we may expect houses to sit a little longer on the market, have fewer bids, and give buyers a little more leverage than they’ve had the last two years. But only a little.
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
