If you’ve been in the market for a home or have been keeping an eye on the market as you consider selling, it’s probably no surprise to you that prices are up. In fact, this was a record year for home prices, which jumped by almost 20%.
While many people have felt priced out or found it difficult to secure mortgages with this price increase, lenders have taken note. Beginning in 2022, buyers in certain markets will be able to access federally-backed mortgage loans of up to $1 million. The majority opinion seems to be that million-dollar homes will soon be the norm, especially in highly competitive markets. By increasing the allowed loan amounts, lenders are certainly making it clear where they think the market is headed. And the numbers back it up.
On average, home prices have risen 4.56% since 1980. If that trajectory continues, then we could see the median home price hit $1 million in the early 2040s. Right now, the median home price in the US is $404,700. While 4.5% might not seem like a lot, it clearly compounds and adds up over time.
What does it mean for us in Tampa?
As a growing metropolitan area, Tampa home prices have consistently been on the rise. For those looking to get into Tampa real estate, sooner is better than later, especially if home prices continue to increase at historic rates. Younger workers will want to start saving for their down payments, if they haven’t already. For those looking to sell in the area, there is plenty of incentive to list your home before home inventory increases. Once new housing stock hits the market, you will have more competition and buyers will have more options. Construction has been delayed in many areas because of lumber and other shortages. This will get sorted out over time and there will be many new homes hitting the market. If you are hoping to take advantage of this seller’s market, now is the time. Give me a call to get your listing started.