Tampa Bay Housing Market Update: Steady Prices and Growing Inventory
The Tampa Bay real estate market continues to show resilience amidst shifting conditions. While hurricanes have impacted activity and added to market uncertainty, home prices remain steady, and inventory levels are improving. Here’s an in-depth look at what’s happening in our local market right now.
Home Prices: Stability Amid the Shift
The median price for single-family homes in the Tampa Bay area currently sits at $402,000, down a modest 1.3% from last year. For townhomes and condos, the median price has decreased by 3.9% compared to the same time last year. Despite these slight dips, the year-over-year average price growth for single-family homes is still up by 0.9%. However, townhome and condo prices have faced steeper declines, down 16.6% on average.
Even with these shifts, it’s important to keep perspective. According to Dr. Elliot Eisenberg, Consulting Economist for Greater Tampa Realtors (GTR), “While Tampa has seen one of the most dramatic shifts from housing market superstar to average performer, the entire metro area is only down 3% from its COVID-era peak.”
Inventory and Market Activity: More Choices for Buyers
Inventory levels are rising, giving buyers more options than in recent years. Single-family homes now boast over 11,000 units, representing a 3.5-month supply. For townhomes and condos, inventory remains steady compared to last month. This shift means buyers in Tampa Bay may have more negotiating power, especially as homes spend more time on the market.
Single-Family Homes: Median time on the market has increased to 38 days, up from just 20 days last year.
Townhomes and Condos: Median time on the market now averages 55 days, compared to 21 days a year ago.
Economic Outlook and Mortgage Rates
Nationally, the economy remains strong, with Q3 2024 GDP growth estimated at 2.8% and unemployment slightly declining to 4.1%. However, inflation remains a concern for the Federal Reserve, which could lead to changes in monetary policy. Mortgage rates remain elevated, impacting affordability and keeping some buyers on the sidelines.
While new construction remains robust, existing home sales are at historic lows, hovering around levels not seen in decades. More sellers are listing their homes, hoping to capitalize on steady prices, but buyers remain cautious due to higher borrowing costs.
What This Means for Tampa Bay
For Tampa Bay, the current market presents a mixed bag of opportunities and challenges:
For Buyers: With more inventory and longer days on the market, there’s an opportunity to negotiate better deals, especially on homes that have been sitting for a while.
For Sellers: While competition is increasing, pricing your home strategically and ensuring it’s market-ready can help attract serious buyers.
Looking Ahead
Dr. Eisenberg notes, “While certain segments of the housing market remain robust, overall, it continues to soften. Now that the election is behind us, we may begin to see clearer trends in how new policies impact the housing sector.”
The Tampa Bay market remains resilient, with steady prices and increased inventory offering opportunities for both buyers and sellers. Whether you’re looking to buy your first home, upgrade to your dream house, or sell your current property, our team at The Key Group is here to guide you every step of the way.
Let’s connect to discuss your goals and make the most of today’s evolving market!