Foreclosure Trends and Home Prices in Tampa

According to a recent analysis by CoreLogic, a company specializing in real estate data and analysis, after last year’s high peaks, mortgage interest rates are decreasing in Tampa Bay. However, homeowners in 20 other U.S. cities may need to brace for rising home prices.

CoreLogic anticipates a 2.5% increase in home prices nationwide by November 2024. In certain areas, such as California and Fairbanks, Alaska, this figure is expected to rise higher than the national average.

Selma Hepp, Chief Economist at CoreLogic, notes that although high mortgage rates have frustrated many first-time buyers’ dreams of purchasing property, competition and housing costs have remained persistently high. She says, “This continued strength is remarkable given the nation’s affordability issues, but it highlights the pent-up demand pushing home prices higher.” Markets where a long-standing inventory shortage has been worsened by a lack of new homes for sale have seen significant price increases throughout 2023.

In terms of markets likely to experience a decline in home prices, the city of Tampa and the state of Florida in general lead the top five. CoreLogic data indicates that the following metropolitan areas in Florida have the highest probability of home price declines: Tampa-St. Petersburg-Clearwater, Palm Bay-Melbourne-Titusville, West Palm Beach-Boca Raton-Delray Beach, and Deltona-Daytona Beach-Ormond Beach.

The company’s predictions are based on a real estate index that includes factors such as the median home price, time on the market, property type, loan type, and distressed sales, including all those involving a foreclosure process.

Limited supply remains the primary challenge for potential homebuyers seeking affordable homes, even as mortgage rates decrease. Lawrence Yun, Chief Economist of the National Association of Realtors, stated, “Only a significant increase in supply will curb price growth.”

Available Foreclosures:

Tampa: 150 homes available.

Palm Bay: 120 homes available.

West Palm Beach: 130 homes available.

Deltona-Daytona Beach: 110 homes available.

By Elias DaSilva | October 8, 2024.