Despite an increase in mortgage interest rates, Tampa’s hot market managed to get even hotter in May. Home prices increased 33.4% year-over-year in Tampa — the highest increase nationwide. Florida led the country with a home price increase of 33.2%, according to CoreLogic’s Home Price Index.
In other parts of the country, the rate of home price increases slowed from April to May. Tampa’s high price increase shows how in-demand housing is in our area. Deputy chief economist Selma Hepp believes that the market will normalize over the next year and the rate of home price increases will slow. However, as Tampa and Florida have remained outliers for the past several months, it is not clear whether the slowdown will impact our area as much as it may impact other parts of the state or country.
If you are hedging your bets that home price rates will slow soon, you may be surprised. While the rate of growth may slow down, home prices will likely remain high in our area. Low housing inventory will continue to affect the Tampa Bay real estate market, driving demand for listed homes.
If you have felt shut out of the market though, increased mortgage interest rates has reduced some of the competition. Let me know what you are looking for and I will help you get the keys to your next home.