The Real Estate Market in Tampa is an exciting place to be in 2022. Last year brought record numbers to the Tampa Bay area and we here at PRIME started to notice faster turnaround times, less inventory and record population increase numbers for the area.
Lets break down some of the reasons why Tampa won the #1 position in 2022. Here are the topics we will be discussing in this article:
Should you buy, should you sell? A renters paradise or nightmare? We always try to give you local insider information on what the market is. If you ever want to discuss a particular location with us in greater detail be sure to reach out and start a conversation with us.
To better give you an idea of what our local area looks like in the real estate market, lets discuss what has happened just last month…December of 2021. The statistics and trends of the Real Estate Market in Tampa were provided by Redfin.com. They offer great market data to you as investors to show real time trends. So, let’s dive right in to four main destinations that are on fire right now.
In December 2021, Tampa home prices were up 14.4% compared to last year, selling for a median price of $338K. On average, homes in Tampa sell after 11 days on the market compared to 18 days last year. There were 1,091 homes sold in December this year, down from 1,167 last year.
In December 2021, Clearwater home prices were up 24.8% compared to last year, selling for a median price of $330K. On average, homes in Clearwater sell after 12 days on the market compared to 17 days last year. There were 386 homes sold in December this year, up from 360 last year.
In December 2021, Palm Harbor home prices were up 8.3% compared to last year, selling for a median price of $341K. On average, homes in Palm Harbor sell after 10 days on the market compared to 15 days last year. There were 159 homes sold in December this year, up from 151 last year.
In December 2021, Tarpon Springs home prices were up 25.0% compared to last year, selling for a median price of $350K. On average, homes in Tarpon Springs sell after 11 days on the market compared to 21 days last year. There were 81 homes sold in December this year, down from 93 last year.
We found an article by Zillow that broke down..well, everything!
They say in their article, “But while all of the nation’s 50 largest markets are expected to grow healthily in 2022 and sellers nationwide should expect to remain in the driver’s seat, there can be only one Number One – and Zillow expects Tampa to top the list, with a host of relatively affordable and fast-growing Sun Belt markets following closely behind.”
We loved the Highlander reference and completely agree. Here’s what they say about the top 10 hottest markets in 2022
Real Estate growth in 2021 broke records. This growth has been fueled by low mortgage interest rates, pandemic-influenced decisions and demographic shifts from aging millennials and boomers. Inventory of available housing has been limited. None of those trends is expected to change in 2022 and limited housing supply coupled with sky-high housing demand is a classic Econ 101 recipe for rising home values.
That said, many of the fastest growing markets in 2021 are expected to slow somewhat in 2022, making way at the top for other markets. Tampa is expected to rise from fourth-fastest home value growth in 2021 to fastest in 2022.
Fewer sellers willing to sell means less inventory. Fewer homes built by builders leads to low inventory. When demand is very high, even a decent number of homes on the market can still sell very quickly. Our last home we sold lasted 4 days on market, and in this day and age having a home on the market longer than 12 days means something is fishy about the property. It could be haunted. You never know.
Nationally, we have lost a job for a new housing unit built. Wow. As the labor market recovers, several major metros have actually added more jobs than new units despite the battle with Covid19 on a whole. Tampa added 0.63 added jobs per new unit, second only to Salt Lake City at 0.99 added jobs per new unit. Also with job gains were Phoenix, Austin, Jacksonville, Dallas, Raleigh, and San Antonio.
Baby Boomers and millennials represent two enormous generations, both very active in the housing market. Boomers are hardly exiting the market as they age, staying active and purchasing homes in the Sun Belt as they retire and/or move to be closer to grandchildren etc. And millennials are just beginning to age into their prime home buying years as they hit their early-mid thirties, a time when many Americans traditionally begin to settle down, start families and think differently about the type of home and type of community they want and need.
The boomer housing market is expected to continue to rise for at least the next 8 years. This means the 2020’s will be a period of sustained underlying demand in the housing market. In 2022, the market with the most demographic lift in the for-sale market is Austin, TX. Orlando follows at 2.8%, and then Tampa at 2.7%.
If you ever wandered over to Zillow to check out some of the agents in the area, you might have found a PRIME agent there. We like to use Zillow to help you find what you need. Most of you that haven’t met us or have 1st or even 2nd hand encounters with one of our agents will trust Zillow over us anyways! We are all the same; Zillow agent or PRIME agent! Zillow is a great resource for our agents and for you as homebuyers and owners. So, here’s a couple of our agents that are on Zillow right now!
Specialties are: Buyer’s agent, Listing agent, Relocation, Foreclosure, Property Management and Landlord.
Specialties are: Buyer’s agent, Listing agent, Relocation and Consulting.
There are two large known risk factors for housing markets in 2022. First, mortgage interest rates are expected to rise in 2022. Home loans will be more expensive for aspiring buyers. This could potentially drive up competition for the lowest-priced homes in those markets or removing them from consideration altogether. Historically, home value appreciation has strong negative correlation with interest rates.
Second, forecasts on the performance of stocks are incredibly wide, with analysts’ 2022 year-end targets ranging from -7% to +13%, slower growth in any case than what we’ve seen in the last 2 years if not declines. A slower stock market would mean buyers are bringing relatively less to the table for a down payment in 2022. This would most affect markets where there are a lot of first time buyers or where more buyers are entering from lower cost areas, bringing less equity from their previous home. (Or if housing is treated as an asset it could mean a substitution to housing in the next few months. What follows addresses only the downside risk.) In the following markets, growth has strong positive correlation with stock market returns — so if the stock market falters next year, we’d expect home value growth in these places to slow disproportionately: Phoenix, Las Vegas, Cincinnati, Hartford, St. Louis, Miami, Cleveland, Los Angeles and San Jose.
We here at Prime are obviously excited for what 2022 will bring in the Real Estate Market in Tampa. We talked about what the Real Estate market in Tampa looks like that’s to some really good local stats. Don’t forget the great news that Zillow ranked us here in Tampa, FL the #1 spot for the Hottest markets in real estate for 2022. If you liked this article, be sure to check out our 2021 recap. It brings you a lot of good local knowledge you cant find anywhere else!
Not only do we have the best beaches in America…now we are the hottest Real Estate Market in the country! 😎
So if you need an agent to help you navigate through this market, be sure to reach out! You can find us on Facebook, Instagram, LinkedIN, Zillow, Realtor.com AND Trulia! Or you can just give us a call at 877-727-5259 or fill out this form!