2022 Third Quarter Tampa Bay Real Estate Statistics
Signs are emerging that indicate an overall slowdown in U.S real estate sales. This slowdown is being driven by three converging factors:
- Increasing interest rates
- The rapid rise in home prices
- Stock market declines and economic slowdown create caution in the market.
Even with these headwinds, the continued migration to Florida (with Tampa Bay being a top destination) generates increased demand for housing. New housing (homes, condos, townhomes, apartments) is not being built fast enough to meet the current need. The statistics do indicate the market is moving toward a better balance between supply and demand:
- Homes for sale (Active Listings) have doubled since the beginning of the year but still remain at 62% of pre-pandemic levels.
- Sales have slowed from the record pace set in 2020 and 2021 and are more reflective of sales levels in 2014.
- Interest rates, after a spike in June, have moderated somewhat in July.
- Prices have been stable for the past three months, indicating cooling of the rapid increases seen previously.
The current market is becoming much more rational for buyers. Many more offers require inspections, many are contracted at or below list price, and cash offers are less common.
One hesitation might be the interest rates, still above 5%. To put it into perspective, interest rates never were below 5% before 2009, making the past 10 years an anomaly. So, if you can find your perfect home, you can lock in the current rate. If rates go lower, you can always refinance. The key is to understand what payment you can afford in advance of your home search. And now you have twice as many homes on the market for your consideration!