What’s in store for the Tampa, FL real estate market in 2017?
The Tampa Bay area has enjoyed a good upward run economically and in terms of property values over the last five years. Will it continue in 2017? What factors may play a role in the evolving market?
Tampa Real Estate 2007 to 2017
Tampa was on top of the world in 2007. It had begun attracting a lot of national and international attention as domestic and global investors hunted for value and deals. As with the rest of the planet Tampa’s property market took a dive in 2008. It bottomed out in 2012, and prices have been rising since.
According to data from Zillow, Tampa home values rose 13% in 2016. As of the beginning of this year the median home price was just a modest $173,400. That’s below the previous peak of $204,000, but close to double the low. The median list price per square foot as of November 2016 was $158. Rents are below the national average, but still over $1,300 per month.
Today Tampa is once again a trending destination. The Tampa Bay Lightning hockey team has been named the number one sports franchise by ESPN. New development has transformed the core, with new entertainment, more walkable communities, and an exciting culinary scene. Tampa’s economy is booming. It is prized as a great city for tech workers, and major firms are doing well. Last year 21% of Florida Trend companies (those with the largest revenues in the state) are headquartered in Tampa. That includes a variety of firms heralding 30% to 70% increases in revenues; such as Heritage Insurance, Cott Corp, Dex Imaging, and Triad Retail.
Miami headquartered Sky Five Properties reports it is seeing a new shift in investors looking for more value in Tampa. Especially those interested in fixing and flipping houses. Miami may still hold the crown when it comes to drawing wealthy internationals to skyscraping condos and beachfront mansions, but robust building of new luxury condos like Icon South Beach has seen prices in South Florida exceeding $1,400 per square foot for a couple years now.
Time has named the Tampa-St. Petersburg area as one of the “hottest real estate markets for the next five years.” The publication and data from Moody’s Analytics suggests local property values are still 10% undervalued. Time projects modest increases in values through 2020. Zillow forecasts local home prices to rise by 5.5% in 2017.
Factors Impacting the Market in 2017
Among the factors to watch for this year include:
- Rising mortgage interest rates
- Accelerated interest and demand for Tampa real estate
- Easier access to credit
- Trump’s jobs initiatives
- Investment in infrastructure
- Availability of inventory
Everything looks positive for Tampa for this year. Property prices should keep going up. However, high rents, and easier access to mortgages could drive more tenants to buy homes. Whether it plays out as a buyer or seller’s market in 2017 will depend a lot on the amount of inventory coming available.