2023 Tampa real estate trends predicted that the market would remain hot despite high-interest rates, and they were right. Although the market came down from the ultimate high it experienced in recent years, home prices continued to set records throughout 2023.
Will this be the year you make homeownership a reality and become a first-time homebuyer? Will you finally be able to afford your dream home? Or maybe you want to buy an investment property?
Let’s review the forecast for the Tampa housing market in 2024 to see what’s possible!
Tampa Housing Market Trends and Stats
Tampa home values continue to be some of the best in the country. Zillow recently reported that Florida surpassed New York and has the country’s second most valuable housing market, only behind California.
Because the pandemic spurred many people to move out of these states, home values shot up (and continue to rise) for those like the Sunshine State. In fact, Redfin states that Tampa is home to five of the top ten areas people are moving to!
Tampa Housing Market Overview
Tampa is and will remain a robust real estate market well into the future. Let’s break down predictions for buying and selling a home in Tampa in 2024.
Buying a Home in Tampa
Despite higher costs, now is still an excellent time to buy a Tampa property. With the influx of new residents showing no sign of stopping, home values will only continue to rise.
Even if price gains are smaller year over year than in previous years, the long-term investment is undoubtedly worth it.
Selling a Home in Tampa
Home sellers can continue to expect to sell for a healthy sales price since the median and average sales prices continue to rise.
The challenge for sellers is finding a new home. With low inventory still being an issue and interest rates near 7%, the incentive to sell is not as high as in 2021 or 2022. Sure, you may sell for a record price, but you’ll also need to consider the costs of a new property at a higher mortgage rate.
Will Tampa Housing Prices Drop in 2024
Experts agree that the Tampa real estate market will not experience any significant dips in price next year. Although prices are rising slower than last year, they likely won’t decrease but increase more gradually.
Will 2024 Be a Seller’s or Buyer’s Market in Tampa?
The 2024 market will favor sellers, but it won’t be bad for buyers either. Low inventory makes it easier for properties to experience bidding wars and sell at record prices. While not great for buyers, sellers will benefit.
However, the Federal Reserve hinted it would lower mortgage rates in 2024 with three to six decreases. This would increase affordability and bring many potential buyers back to the market (a great thing for sellers, too).
Tampa Housing Market Predictions for 2024
Tampa housing market predictions state that more home sellers will come back to the market, easing the low inventory the market currently faces. Thus, the number of home buyers will also increase, especially as interest rates reduce.
High prices will remain a reality until inventory can catch up with demand. Unfortunately, although new construction will increase by upwards of 12%, it still won’t be enough to meet the demand and population growth Florida is facing.
Thus, a turnaround in home sales is likely, with property values growing faster in 2024 than in 2023.
Will there be a Housing Market Crash in Tampa
Economists agree that a housing market crash in Tampa or elsewhere in America is unlikely. Florida is a high-demand market for homebuyers. With its beautiful beaches and warm weather, it’s difficult to imagine people stop coming to the state.
Compared with many other states, Florida offers better affordability and a stronger job market. There’s a lot to love about Florida, and Tampa in particular, which is why it’s become a favorite for homeowners in recent years.
The Tampa Housing Market in 2024
A study by the Florida Atlantic University found that Lakeland, North Port, and Tampa were among the country’s top ten most overpriced housing markets. Yet, they predict it won’t deter buyers, keeping the market hot.
The most significant factor for the Tampa housing market will be inventory. If inventory increases, the market may see a slight price decline. But inventory has a long way to go to meet demand.
Find Your Next Tampa Home with Kimmie Fine
If you’re looking to buy a home in the new year, learning about the Tampa housing market in 2024 can help you decide if buying in Tampa is for you.
If so, start your buying or selling experience today with me, the best real estate agent in the area.
As a prominent figure in the Tampa real estate market with 20 years of experience in real estate sales, I have valuable knowledge of real estate in Clearwater, Tampa Bay, and St. Petersburg areas.
Give me a call today to get started with the buying or selling process!