After many interest rate increases over the past year, the Tampa Bay housing market is now experiencing a rebalancing and there is new competition shifting towards lower-priced homes once again of $250K - $500K. We are also seeing fewer multiple offer situations taking place as sellers are not as well positioned to demand that buyers pay over ask, as was in the peak of the market. The higher interest rates have also discouraged buyers as it has only amplified the unaffordability of the higher-priced homes which they were originally looking at.
While housing inventory levels for the Tampa Bay region remain low, they have increased off the historically low levels we saw at the end of 2021 and early 2022. As some sellers are still trying to capture the peak market prices, we are now seeing where homes are now sitting on the market longer, listing prices are being reduced, more negotiations and even seller concessions are taking place.
In terms of Tampa Bay’s new construction market, builders are no-longer implementing lottery systems, but buyers, who are not purchasing an inventory home, will still need to get registered on builder wait lists and wait times for custom homes are still running roughly 10+ months.
Tampa Bay Housing Market Outlook
My outlook for the Tampa Bay housing market for early 2024 is a continuation of the same strong buyer demand, for many reasons. I also expect to see our home prices continuing to stabilize and for home appreciation to be much lower going forward. Current housing inventory in the Tampa Bay area is roughly 2.9 months (as of Oct 2023) and I see these inventory levels slowly trending back to a more normalized market of 5 – 7 months in the year ahead.
View market trends and relocation advice
Market Trends I'm Observing
I am observing the following trends currently taking place in the Tampa Bay housing market.
- The number of sales transactions has slowed a bit due to increased interest rates and the continued low inventory levels.
- Sellers are currently negotiating more, and implementing listing price reductions, as their homes are sitting on the market a bit longer.
- Investors continue to purchase properties for Airbnb and annual rentals as Tampa’s rental market is one of the strongest in the country.
- Large hedge funds and cash buyers are now being more picky with their purchases and inspections, and not offering “slam dunk” offers as was previously.
My Relocation Advice
The best advice I can provide to those seeking to soon relocate to the Tampa Bay area is reach out to me as I have now lived in the area for over 28 years and am glad to share lots of helpful insights about our housing market, top communities and new developments, our expanding employment market, fun things-to-do as well as local scenes to explore. I can also connect you with top lenders to make your transition to the Tampa Bay area as smooth as possible.