Highlights about the Tampa Bay Housing Market
In this short video I’ll give you a quick update on the Tampa Bay real estate market as of July 2022.
We are getting plenty of questions about the Tampa Bay real estate market from locals and people thinking of moving to Tampa :
Are prices about to crash?
Are buyer’s buying Tampa real estate?
Will my house sell in today’s Tampa Bay real estate market?
Tampa Bay Real Estate Market Updates
Don’t panic! In this short video, I’ll give you three key highlights about the current housing market:
- Home prices and recessions- what history shows us
- Are prices dropping- here’s the data
- Are houses still selling- here’s the data
We aren’t seeing anything we haven’t seen before… which feels funny since we’ve just spent the last couple of years or so seeing everything as historic and never-before seen!! If you want to know more about the cost of Living in Tampa Bay- watch this video next!
We are certainly seeing a market right now that’s very different from the last two years yet, you know, recession doesn’t equal a housing crisis. Let’s take a look at the data today.
I’ve literally just come back from a closing. Wow. We had like 13 or 14 offers, but I think if we were listing that house today, there’s a decent chance we’d be working that transaction in a bit of a different market. And we’re hearing you ask questions about it. Let’s look at a survey that goes back again all the way to the early eighties.
Inventory is still LOWER than buyer demand. If you have something to sell, now would be a great time.
Housing prices in a Recession
While four out of the six times we’ve been in a recession homes appreciated. Okay. Two times they fell once was marginal in the early nineties. And the other time was in 2008. The thing I would have to say here is ever since 2008, that word recession has taken on a whole new meaning for people, you know, for good reason, there were a lot of people that were hurt.
A lot of people who were impacted during that 2008 recession, our business was at the epicenter and any of us that were in the business. We certainly remember that. And we certainly remember the times that we went through during that, but I think we have to have a solid understanding of what’s happening now.
Is Tampa Bay still seeing multiple offers and bidding wars?
Let’s look at what we’ve been seeing on offers received. We’re starting to see that number decline. It peaked around an average of five and a half offers in April. It dropped to five, and now we’re at about 4.2 offers per listing. That’s nationally. That’s the latest number that was from June. Now, what that means is the rising interest rate environment is starting to soften our buyer demand. Now think about it though!! 4.2 offers a home sold!! It’s still far above a pre pandemic norm. So definitely still a competitive market, but we’re seeing a little bit of that softening, that moderation.
What’s happening to offer prices in Tampa Bay?
What we’re also seeing is the offers over asking price, starting to decline. A month ago, 61% of offers were over asking price and that number’s now softened to 55% being over asking price. And isn’t that truly a more healthy market?
Tampa Bay housing inventory- finally improving!
There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings. So put a pin in that thought because we’re gonna get back to that. So it’s a slow-down in the pace of sales. And remember that months supply measures the inventory of sales relative to the pace of sales. So same inventory, fewer sales means more months supply. So we know that the month supply of inventory of homes is increasing. It was record low in January. This year, they were at 1.6 months nationally, and we’ve ticked up to the latest status showing about 2.6 months of inventory.
Now that doesn’t sound like a huge increase, but it certainly means more options for buyers. And there’s a bit more inventory available to look at. And we’re seeing that too.
New Construction Homes, Tampa Florida 2022-2023
If you’re considering new construction homes in the Tampa Florida market, be sure to check out this video and article about things to bear in mind BEFORE you go to contract to build in late 2022 and 2023. With fluctuations in the interest rates, pricing, and build times, don’t get caught by surprise.
What is a Balanced Market?
Now remember a balance market is six months of inventory, and we’ve not seen that since 2012. So we’re nowhere out of the woods on where we need to be with inventory to meet that balance market. But we’re certainly moving in the right direction. If we can help you reach out, we are here to support you and help you in your home buying journey, make it a great day and we’ll see you on the next video
