This time last year, it seemed like the whole country was caught up in a home-buying frenzy. But thanks to high interest rates and stubborn inflation, “the housing market is pretty much on ice,” said Daryl Fairweather, chief economist for real estate analytics firm RedFin.
U.S. home sales are down 22% year over year according to March data from the National Association of Realtors.
This has caused significant price drops in some markets. But not in Tampa Bay.
The median sales price for Tampa, St. Petersburg and Clearwater is $395,000, a 1.3% increase from last year, according to March data from Greater Tampa Realtors.
Though home sales are down 15.4% in the Tampa Bay area, there are still more buyers than sellers, said Lei Wedge, a professor of finance at the University of South Florida Muma College of Business.
There were 6,513 active listings in March. That’s a 121.8% increase from last year, but still well below pre-pandemic era norms. By comparison, there were 11,816 active listings in February 2019.
In order to tip the scales back in favor of buyers, “you would have to have tons of people trying to get rid of their homes,” Wedge said.
Carol Hasbrouck, an agent with Luxury & Beach Realty in Pinellas County said many homeowners are hesitant to sell because they are already locked in at a lower mortgage rate.
“It creates challenges for buyers because they can’t find what they’re looking for,” she said.
The slowdown hasn’t been all bad for buyers though. Hasbrouck said there’s less competition from large investors, cash buyers and people who are willing to waive their rights to home inspections and other protections.
As the year progresses, Fairweather said prices may continue to grow some in the Tampa Bay area, but the rate of growth is expected to slow.
Falling mortgage rates could provide some relief. Right now the average 30-year fixed rate is around 6.9%. RedFin is forecasting that it will reach 5.5% by the end of the year.
Source:
ENB
Sandstone Group
