Tampa is a large community located in west central Florida along the Gulf of Mexico. The growing metropolitan area is in Hillsborough County and has direct access to Tampa Bay and the Gulf. The city is full of history and culture, and the people are friendly and welcoming. The homes and architecture are beautiful, and the area is full of activities for residents and visitors.
Tampa is an excellent place to buy a home. The real estate market is booming, and there are many Tampa luxury homes with water views for sale. Many locals are wondering what the real estate market will look like for the rest of 2023; here's what to know about home prices and more:
Growing population
Tampa's population is growing rapidly. The city is expected to continue growing throughout 2023. This growth is due to the city's strong economy, lower cost of living than other metropolitan areas, and attractive lifestyle. The housing market is expected to stay strong in Tampa as more and more people move to the area. Part of the reason the economy is so strong are the lucrative job opportunities. There are many large companies and thriving businesses which encourage people to move to Tampa for better jobs and access to opportunities. The job market, paired with the desirable location on the coast, makes Tampa a prime community.
Supply and demand
While the Tampa housing market continues to boom, there are some things to keep in mind when looking to buy a home this year. The market is driven by two main factors: the supply of homes and the demand for homes. The supply of homes is always changing as new homes are built and older homes are sold. The demand for homes is also constantly evolving as people move into and out of the city or change their lifestyles. Currently, the market in Tampa is a seller's market, meaning there are fewer homes for sale than buyers looking to purchase a home.
Buyers and sellers can expect the market to remain a seller's market. Fewer homes on the market relative to the number of buyers looking to purchase will give sellers more negotiating power and the ability to choose from a number of buyers. Additionally, sellers can expect to receive a higher price for their homes as buyers compete for properties. Buyers can expect the market to remain highly competitive, pushing buyers to make strong initial offers.
Price expected to remain high
The Tampa housing market is booming, with steady growth predicted for the city in 2023. Although a number of factors drive the market, high prices are expected to remain. As the demand for homes continues to increase, the supply cannot keep up, increasing home prices. The pandemic caused soaring prices and drastic market changes in many areas. Over the last year, sellers saw over-asking offers and sales within days. While the market will remain active and fast-paced, these conditions are expected to slow. Buyers can expect prices to stay high with slow increases. There are no predictions for significant dips or jumps in the market to alter home prices drastically.
Rental prices push more people to buy
As more people move to Tampa, the demand for housing increases, which drives up prices, and the same is true for rent prices. Rent prices in Tampa have increased significantly in the past year, pushing more people to consider buying. Renters can expect rent prices to continue rising in 2023 and a competitive market when searching for a home. Tampa will likely see a jump in first-time home buyers in 2023 as the market calms and rent prices remain high. This will also increase demand for homes and keep home prices high.
Interest rates
In addition to the general market trends, interest rates also affect the Tampa housing market. The interest rates are increasing but still remain historically low. Many buyers can delay purchasing a home due to increasing rates, but the rates are low compared to past numbers in the double digits. Additionally, rates are still low enough that many people are able to get a loan and buy a home. Buyers can find lower rates by researching lenders and comparing options in the area.
What the forecast means for buyers and sellers
For 2023, buyers can expect a calmer but competitive market with Tampa real estate. Sellers can expect strong offers and optimal conditions for fast sales. The best way to learn more about the local market you decide to buy or sell is by working with a real estate agent.
How to navigate a competitive market
As the market continues to be competitive, it is vital to have knowledge of the market and be able to navigate even minor trend changes. There are a number of ways to do this, including doing your research and speaking to a real estate agent, who will have in-depth and precise knowledge about the market and help you choose when to buy or sell with a successful outcome.
KVA Group is a team of Tampa real estate agents with years of experience in local neighborhoods. Our team is dedicated to the details that can significantly impact your sale and provide you with a seamless transition. Despite current or future market conditions, our real estate agents can help you buy or sell a home with less stress. Reach out when you’re ready to get started.
