Welcome to our June 2024 Tampa Bay real estate market update! This month, we’re diving deep into the March and April sales statistics for Tampa Bay, focusing on Pinellas and Hillsborough Counties. We explore crucial trends in inventory, pricing, buyer demand, and forecast the upcoming months.
The Tampa Bay housing market is seeing a significant rise in inventory. In Pinellas (St. Pete-Clearwater areas), active inventory for single-family homes has skyrocketed by 96% YOY, with 2,734 units now available. It is also important to note that we have 14% more homes on the market now than we did prior to the pandemic.
Tampa/Hillsborough is also experiencing a 48% increase in inventory, though it remains 22% below pre-pandemic levels.
The number of homes available on the market is having a major impact on units sold. Not only did Pinellas experience a 96% increase in inventory, we also saw 22% more homes sold compared to April 2023. Conversely, Hillsboroug experienced a 3% decline YOY in units sold. It will be interesting to watch to see which way the tide flows.
How are home prices reacting to the increased supply? In the St. Pete/Clearwater area, prices remain strong, with a 9% YOY gain and a 7% increase from March to April 2024.
The Tampa/Hillsborough market has seen a slight dip, with average home prices dropping from $562,236 to $542,101 from March to April but a 7% YOY gain. The Tampa condo prices have been on a bumpy ride this year. The average sales price is down 9% YOY but up slightly from March to April.
Affordability is the key issue influencing buyer demand in Tampa Bay. Factors like price, interest rates, taxes, and insurance are making it challenging for buyers.
Florida insurance costs are 5 times greater than the national average. According to a recent article by the Tampa Bay Business Journal, “The average cost of premiums in Florida rose nearly 30% between March 2022 and September 2023, according to the Florida Office of Insurance Regulation.”
We expect buyer demand to remain moderate to low without relief in these critical affordability factors.
The law of supply and demand is in full effect in Tampa Bay. As inventory continues to rise, anticipate downward pressure on prices. While we don’t foresee a market bubble bursting, the rate of year-over-year appreciation is expected to slow.
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Rachel Sartain Tenpenny has been selling real estate for over 20 years in the Tampa Bay market. With a Master’s Degree in research science from the University of Florida, she loves to research market trends and dive into the data. If you have questions about the real estate market, contact Rachel Sartain Tenpenny to guide you through your process.
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