What's Happening in the Tampa Bay Real Estate Market? - June 2024 Update
Hey everyone! Welcome back to our channel. Today, we're diving into the latest trends and statistics in the Tampa Bay real estate market. So, what's new?
Inventory Surge
First up, inventory is on the rise. In the St. Pete-Clearwater area, inventory has increased by a whopping 107%, and in Tampa, it's up by almost 88%.
Price Increases
The average sales price is also climbing. In St. Pete-Clearwater, the average sales price for a single-family home in May 2024 was $646,647, marking a 2.7% year-over-year increase. Over in Tampa, the average sales price saw a 4.7% rise, reaching $556,021.
Longer Selling Times
With more homes on the market, properties are taking longer to sell. If you're selling a home in Tampa Bay, expect it to take between 63 and 86 days on average. Buyers have more options and are taking their time, often visiting homes 2-3 times before making an offer. They're looking at comparable sales to ensure they make a smart decision.
Affordability Concerns
Affordability remains a major issue, influenced by prices, interest rates, property taxes, and insurance. These factors combined are making many homes unaffordable for the majority of buyers in Tampa Bay.
Absorption Rate
The absorption rate, which measures the number of homes sold versus those on the market, was only 35% in May 2024. This means just 35 out of every 100 homes sold, which is significant considering May through August is typically the peak selling season.
What to Expect
It's crucial to keep an eye on these trends to understand what the second half of 2024 might bring. If you're selling a home, now is not the time to "test the market." Base your sales price on recent sales in your area, not just what's currently listed.
Tips for Buyers
For buyers, this is a great time to explore your options and leverage your negotiation power. Instead of asking for a drastic price reduction, consider negotiating for the seller to pay for mortgage discount points. This can save you more money monthly by lowering your interest rate.
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