The up-and-down nature of real estate market trends in 2023 has caused much fear-mongering about a housing crash (Which, I might point out, never happened here in Tampa). As a result, I’ve been keeping a close eye on the housing market this year to understand if any emerging trends in real estate would negatively impact my clients.
Let me be your voice of reassurance: so far, so good!
What has come to pass in the 2023 real estate house market is interesting, if you want my take on it. The chief economist at the National Association of REALTORS® (NAR), Lawrence Yun, reported this month at their quarterly summit that, overall, homebuyer bidding wars have returned!
What does this mean for you? Buyers are still hot to buy even though inventory is historically low – which is fantastic news for sellers, particularly since the returns for the Tampa real estate market continue to be high with 4.85% one-year ROI, and would-be-Floridians show no signs of a slowdown in moving here.
What’s more, the deputy chief economist and research guru, Jessica Lautz, broke down what’s trending in recent months. Let me save you the trouble of sifting through tons of data and hit the highlights of NAR’s report here:
- The sky is not falling in the real estate market: Right now, we are averaging more than three offers per listing, with a third of homes getting above listing price across the U.S.
- Want home, will travel: For the last 40 years, people didn’t move far from their original home, maybe 10-15 miles. But over the last year, the median grew to 50 miles on average, and 25% moved more than 470 miles!
- Show me the money: Cash buyers now comprise 26% of the marketplace (and tend to be experienced investors and property owners).
- Work hard, play hard – then buy a home: People are becoming homeowners later in life, with the median age of a first-time buyer now at 36. And not surprisingly, the baby boomer generation is leading the home buying pack at 39% of the marketplace vs. 28% for young adults.
- If you build it, they will come: Lots of new home construction is now making up 20% of the market (which used to be about 10%), so the hypothetical Magic 8 Ball is predicting a 12.3% increase in 2023 and 13.9% increase in 2023 in new homes.
- Market crash, schmarket crash: The decline is over. Median sales prices are surging, the Housing Price Index is accelerating, and home prices are higher in almost every U.S. market than a year ago.
- Hello, supply – meet demand: Homebuying is at an all-time high, with 76% of homes sold in June in less than 30 days, according to NAR.
If you have concerns, I’ve hopefully been able to present you with the facts so you can rest assured of the market turning a corner. Our real estate housing market in Tampa has operated outside of the bubble anyway – people are coming here in droves, the investment has remained high, and we are outpacing the rest of the country. Check out any of my recent news clippings, and you’ll get a good feel for how great the market is here. The investment is robust, with the best lifestyle to match.
I’m always here as your resource and guide for all things Tampa when it comes to real estate. I have so many exciting listings that you’re going to love. Call me today! Our market continues to appreciate, so don’t wait to hop on board and capitalize on what Tampa has to offer.