Rising Home Prices and Limited Inventory

As summer 2023 approaches, the real estate market in Tampa Bay is showing signs of continued growth and stability. The city has become an increasingly popular destination for homebuyers, with its warm weather, vibrant culture, and the growing job market. Here are some of the key trends that are likely to shape the Tampa Bay real estate market over the coming months.

Continued Population Growth

Tampa Bay is one of the fastest-growing metropolitan areas in the United States. According to the U.S. Census Bureau, Polk, Lee, and Hillsborough counties collectively added nearly 92,850 residents between July 1, 2021, and July 1, 2022. This continued population growth is driving demand for housing, particularly in desirable neighborhoods and school districts.

Rising Home Prices

As demand for housing continues to outstrip supply, home prices in Tampa Bay are likely to continue rising. According to Zillow, the median home value in Tampa Bay is currently around $380,000, up from around $250,000 just five years ago. This trend is expected to continue in the coming months, although the pace of price appreciation may moderate slightly.

Limited Real Estate Inventory

One factor contributing to rising home prices is a limited inventory of available homes for sale. According to the Tampa Bay Times, there were just over 10,000 homes on the market in the Tampa Bay area in March 2023, down from over 14,000 in March 2020. This shortage of inventory is putting upward pressure on prices, as homebuyers compete for a limited number of properties.

Increased Competition Among Buyers

The limited inventory of homes for sale is also contributing to increased competition among buyers. According to a recent report from Redfin, homes in the Tampa Bay area are selling faster and for higher prices than they were a year ago. In March 2023, the typical home in Tampa Bay sold for 3% above asking price.

Real Estate Rental Demand Remains Strong

While the Tampa Bay real estate market is largely driven by homebuyers, rental demand in the area remains strong as well. According to a recent report from Zumper, the median rent for a one-bedroom apartment in Tampa increased by 7% over the past year. The median rent for a two-bedroom apartment increased by 8%. This suggests that there is still strong demand for rental properties in the Tampa Bay area. Most demand seems to be particularly among young professionals and families.

In conclusion, the Tampa Bay real estate market is likely to remain strong in the coming months. This is driven by continued population growth, rising home prices, limited inventory, increased competition among buyers, and strong rental demand. If you’re considering buying or selling a home in Tampa Bay this summer, it’s important to work with a knowledgeable local real estate agent who can help you navigate these trends and make informed decisions.