Still sitting on the sidelines of the real estate market?
Scared money never wins. No one ever got ahead, or got wealthy form their savings account. Yet, 90% of millionaires credit their financial status to real estate. The rest depend on it heavily to protect and grow their wealth. That includes today’s top business leaders like Mark Zuckerberg, Larry Ellison, Warren Buffett, and Elon Musk.
It’s True – Tampa Real Estate Is Hot
According to Zillow, Tampa home prices grew 14.6% last year. The median price of homes listed for sale stands at $275,000 in March 2017, with rents reaching an average of $1,450 per month. Pulitzer prize winning Tampa Bay Times says that a shortage of properties for sale, and high demand is resulting in fierce bidding wars, and new listings receiving multiple offers within hours of being announced.
This Run isn’t Over
Yes, prices are higher than they were a couple of years ago, and there may be a lot of competition for good properties. However, the National Association of Realtors has pegged Tampa as one of the hottest growing markets for 2017 as well. Zillow forecasts another 4.8% rise in local home values between now and February 2018.
Finding Value in the Tampa Housing Market
Home buyers should be wary of grossly overpaying for properties. Yet, there is still value to be found, if you know what to look for.
Despite recent growth, Tampa houses prices are actually still cheaper than back in 2007. That suggest substantial room for growth before another correction is likely. Median home values are around $180,000, which is direct cheap when you look at comparable properties in Miami, NYC, or San Francisco where you might pay at least $1M for a modest home. Zillow puts the current average price of listed properties at just $167 per square foot. Some top international destinations have prices topping $10,000 per square foot.
While foreclosures have been trailing off, RealtyTrac reports there are still over 3,000 Tampa houses in some stage of foreclosure. Those properties have been selling for an average of 28% lower than non-distressed homes.
The interest rate factor is a big game changer this year too. Rates are on the rise. There is unlikely to be any time when financing and prices line up so well to make great bargain deals. At least not in most of our lifetimes. That will attract more buyers, and drive up home prices as the year continues.
The Tampa real estate market is hot. Yet, the fundamentals suggest home buyers have a lot to gain by purchasing now. Those that are objective and look for good deals should be very pleased with their financial decision for years to come. Compass Land & Title has offices in every corner of Tampa Bay and can help facilitate efficient and accurate real estate closings with teams of knowledgeable licensed staff on hand, and in-house attorneys.