The crazy, hot market we have seen in the metro Tampa Bay area was not predicted just a couple of years ago.
We believed the luxury real estate market would continue to emerge here, and that has certainly been the case. However, we could not have predicted the rapid increase in housing appreciation that we have seen.
Markets such as Naples and Sarasota have historically been strong cash markets. Tampa had a higher number of financed sales. The majority of our recent sales have been cash, which drives a highly competitive market. In many cases, this allows investors to beat out the average homebuyer. In March, we continued to see extremely tight inventory moving quickly. Multiple, competitive offers resulted in above-list price sales.
Our advice to our homebuyers: be ready to go.
Prepare to make an offer quickly as soon as a property that meets your needs hits the market. If you are financing, you must have a qualified lender in place. You need to know your financial options and how much money you have to work with. Your agent must be highly knowledgeable about the current market and be able to assist you with negotiating your very best offer to attempt to win the bid.
For cash buyers, you must have your verifiable proof of funds available. Know your limits and what you are willing to pay for the house you really want.
Even with the jump in interest rates, the thought is that buyers who need to move will still do so. Those who simply want to move might consider staying put to see what happens next. In Tampa Bay, our market is solid. Buyers still have an interest in relocating here.
For sellers, it is the ever-present question of deciding where they will go. The cost of renting has also skyrocketed. This forces people to carefully review the cost of renting versus buying to determine what makes more sense for them.
For buyers who are looking at new construction, our global real estate advisors are educating them up front about the length of time it will take for new homes to be completed, the rising cost of construction materials and the labor shortage many builders face when trying to get new builds and punch lists completed. It is a process that requires patience from everyone. Heading into the new build process with clear expectations helps to set the tone. It can be emotional for buyers, and it is best to have realistic expectations.
Predicting what will happen in the next couple of years will be equally challenging.
Rising inflation and increased mortgage rates could slow the real estate market and lessen buyer purchasing power. Additional rate hikes will continue to price some buyers out of the market. The risk factors associated with war and the global economy also impact what happens moving forward, but there are also many different local variables to consider.
Inventory in Tampa Bay will likely remain tighter than demand, allowing for fair market competition. It is a widely held opinion that real estate investments in our area will remain robust.
Rachel Fisher
Rachel Fisher has served as the managing broker of Premier Sotheby’s International Realty in South Tampa since 2018. She was a broker associate at Premier Sotheby’s since 2014 and brings 17 years of residential experience, including as a real estate business owner.
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