The United States (US) real estate market is growing steadily and is forecasted to improve in the coming years as the demand for homes keeps increasing.
Data shows that the US real estate revenue is expected to increase by 5.7% as of 2022, reaching USD$369.9 billion. It’s then projected to rise at an annual growth rate of 3.71% between now and 2025.
Moreover, Tampa real estate is one of the thriving housing markets in the US, gaining the attention of many rental property investors. Hosting the largest port in Florida, Tampa is considered not only a great residential area but also an ideal location for business. That’s why it’s witnessing business expansions, reinvention, and creation of more professional services, increasing job opportunities.
With such economic growth, the area is attracting new residents resulting in a rapid rise in demand for housing. Therefore, if you’re looking to invest in a real estate property, you’d want to consider homes in Tampa. While at it, here are the current market trends to help you make an informed decision:
- Demand and prices
The Tampa housing market is expected to remain hot this year with many market boosts. The typical value of homes in Tampa cost $420,316 on average. These values are modified each season and only include the middle price tier of houses.
According to Investopedia, with a USD$175,000 budget, you can purchase a decent one-to-five-bedroom house or a townhome in an HOA community. And even as prices increase, the buyer demand has remained strong in many neighborhoods in Tampa. It’s likely because of the area’s high-quality living conditions, excellent infrastructure, and better job opportunities.
Youth professionals, active entrepreneurs, and retirees are joining the market daily in search of new homes and commercial spaces. Therefore, if you’re a potential investor, you’d want to consult the real estate industry experts like Corcoran Dwellings for professional advice on the best properties to invest in.
Homeownership is considered a vital component of the American Dream. Many young investors are looking to purchase entry-level properties as a starting point in their homeownership journey. According to Statista, house sales in the US escalated as of 2021 with a total of 6.1 million home transactions. This represents a significant increase from the 5.6 million sales completed in 2021. Based on the survey, it’s projected that the selling activities may go slow this year and witness a surge in 2023.
Even so, Tampa is considered one of the top real estate markets positioned for growth in 2022. The market is expected to experience steady growth in sales and prices. This trend has been witnessed this year as many homes available for sale in the most popular neighborhoods immediately receive offers and sell in a short span. For instance, houses in Southwest Tampa receive an average of four offers and sell in about nine days. As of July 2022, the homes sold after about seven days, down from the previous year’s eight days.
Investors are purchasing real estate properties in Tampa at a record rate. As the demand for housing keeps rising tremendously, there’s, in turn, restrictive supply making the market extremely competitive. According to Forbes, housing inventory reduced to about 910,100 units in December 2021, accounting for a 14.2% decrease from the previous year.
With this tight supply, real estate investors have to compete for the few houses available for sale, even as property owners put their homes on the market at high prices. As a buyer, you can immediately snatch up the new listings at the asking price or pay top dollar, more than the appraised value. With this trend, first-time buyers looking for entry-level homes may be left out since some aren’t ready to make competitive enough offers. Luckily, homebuilders are expected to put more effort this year into increasing the housing supply in Tampa.
Is now a good time to buy?
Though affordability should be a key concern when deciding whether it’s a good time to purchase a home, you should also consider long-term investment returns. Tampa is a great location to buy your real estate property. With the current economic development, there’s an excellent chance for a substantial appreciation in the near future. Therefore, you’d want to get started now. Also, since this might be one of your most significant investments, acquiring a high-quality property with promising returns is best.
Tampa housing market hosts many hot homes, getting multiple offers each month. Therefore, if you’re looking to purchase a home, you’d want to check out the houses in this city. The above market trends can help you understand the real estate industry dynamics. Therefore, you’d want to analyze each aspect before investing your hard-earned money. Also, consider working with professional real estate brokerages to guide you through the process.