There are about 27 days of housing inventory left, less than a month. Months of inventory is the number of months it would take to sell all the properties currently for sale at the average sales pace. The low stock of homes is the result of high demand, low interest rates, and the pandemic.
Almost 400,000 people live in Tampa, and about 4 million people live in Tampa Bay. Due to the pandemic, people began moving from dense, expensive cities to more affordable areas like Tampa Bay. Redfin reported that 47,000 people moved to Tampa Bay last year. That was the fourth-highest influx of people behind Orlando, Phoenix, and Dallas. A side effect of that is an increase in rent and home buying competition.
People are moving to Tampa Bay because homes are perceived to be affordable here. Tampa’s affordability index is a 5 out of 10, which is a mid-range market. With less and less inventory and high demand, home prices will increase. Home prices are forecasted to grow 7.5% year-over-year. Home values have also increased by 10.4% last year and will continue to do so. In Hillsborough, the median sale price on a single-family home has surpassed $300,000.
The sale-to-list price ratio is 99.3%, meaning most if not all homes are selling for the asking price. Most sellers are receiving multiple offers, so buyers have to provide strong offers from the beginning. Strong offers are at least the asking price, if not a little overtopping the highest offer. Cash is king; put down as much money as you can. Lastly, try and solve the seller’s problems and waive contingencies to make your offer more appealing.
With prices increasing and low home inventory, another option is renting. In January the median rent in the Tampa Bay metro area was about $1,375 a month, a 6.9 percent increase compared to last year. Rent in Tampa Bay will increase by 2% in 2020. The most affordable neighborhoods for rent in the Tampa area are Lowry Park, Sulphur Springs, and Riverbend, where rents range between $1,049 and $1,085 per month. The most expensive neighbors for renters include Downtown Tampa, Harbour Island, and Uptown Tampa, with rents of $1,982 per month.
For people who have been considering putting their homes on the market, now is a great time. Homes in popular areas can sell for about 1% above the list price and go pending in around four days. If you’re thinking about selling your residence, contact us today!