Tampa Housing Market Cools Rapidly

In a recent study conducted by Redfin, it has been identified that the Tampa area is one of the fastest-cooling housing markets in the United States, following several years of a very active real estate market with strong numbers. 

The study evaluated year-over-year changes from April 2023 to April 2024, assessing inventory levels, variations in home prices, price reductions, and the proportion of homes sold within two weeks. 

The North Port area ranked first, followed by Tampa and the city of Cape Coral in second and third place, respectively.

This rapid cooling of markets on Florida’s west coast is attributed to several factors, such as the increase in natural disasters, the fear of foreclosures due to high interest rates, the rise in new construction, high insurance costs, and the increase in home prices. 

Among the many figures analyzed in the Redfin study, it is highlighted that approximately 43% of home prices in Tampa decreased, and about 39% of homes in Tampa were sold within two weeks, a decrease of 11.8% compared to the previous year; in other words, homes in Tampa Bay are selling for less and taking longer to sell.

This real estate drama in Tampa is experienced by many people, including Chris Weston, who shares his story and says that after several years of renting his 3-bedroom, 2.5-bathroom home in Westchase, he decided to sell it in February due to high insurance and homeowners association costs. In his selling process, he started with a price of $480,000, then had to reduce the price to $435,000 when he couldn’t sell it quickly. Despite lowering the price and spending a considerable sum on floor, paint, and appliance renovations, Mr. Weston has not yet managed to sell his property.

Heather Espinosa, a real estate agent with Mihara and Associates Realty, agrees with the Redfin study and says, “The Tampa market is definitely cooling down right now, as we currently have 15 properties on the market, and before, the phone was constantly ringing; now sales are slow.”

From the buyer’s perspective, the situation is a bit different, as they are finding opportunities to purchase homes despite high interest rates. 

One case is that of Wes Hughes and his wife Isabella Acosta, first-time homebuyers. They initially tried to buy during the pandemic’s demographic boom and expressed, “We made three offers, offered the asking price, and weren’t even considered.” They ended up renting for another year, waiting for a better opportunity, and after months of bidding wars, they began trying to buy again, having much better luck. The couple made an offer on the first house they saw, below the asking price, and immediately managed to negotiate not only the property but also a seller’s credit, reducing their interest rate from 7% for the next two years.

Available Foreclosures:

Tampa: 120 homes available

North Port: 85 homes available

Cape Coral: 95 homes available

Lakeland: 60 homes available

By Elías DaSilva | 29 de Noviembre de 2024.