Surging home prices are making the news again, as the Tampa Bay Times reported on the biggest price increase in a year for the Tampa Bay area just last week. The reason? Rising values are due to the lack of homes for sale in the area’s inventory. With a lopsided market of too many buyers and not enough homes to buy, even homes that normally fall within an affordable range of $100,000 to $400,000 are seeing moderate price growth. However, while prices are rising, Pinellas and Hillsborough counties have seen a decline in sales, simply because the supply of homes to buy is so low. Here are some market facts to put it all in perspective, as reported by the Times:
- Pasco County leads with a 17.2% surge in single family homes from a year ago, with a median price of $219,220. Hernando County follows in second place, up almost 12% to $164,000, Pinellas County is up 10%, to $244,250, and Hillsborough County is up 6.3% with a median price of $239,090.
- Statewide, prices of single family homes increased 3.3% in February to a median of $246,500. Sales rose 6.9%.
- Nationally, sales of existing homes (including condos, townhomes and houses) increased 5.4% from a year ago, with the median price rising to $241,700, a jump of almost 6%.
For the Tampa Bay area, however, there’s a little more to the inventory shortage than meets the eye. Not all homeowners are sitting on the sidelines waiting for the best moment to put the For Sale sign up in the yard, it’s institutional investors that have purchased thousands of Tampa Bay area homes during the foreclosure crisis. They have been renting out the homes ever since and aren’t selling. This presents a prime selling opportunity for the individual homeowner with a home that falls within that affordable range.
Florida Realtors reported these metro area median price percentage increases for the month of February:
- Tampa-St. Petersburg-Clearwater $228,000 8.6%
- Cape Coral-Fort Myers $250,223 2.1%
- Jacksonville $241,500 10.8%
- Lakeland-Winter Haven $188,500 12.5%
- Miami-Fort Lauderdale-West Palm Beach $336,000 6.7%
- Naples $491,000 15.9%
- Orlando-Kissimmee $255,000 13.3%
- North Port-Sarasota $286,995 4.7%
Now is the time to sell! If you are interested in learning what your home is valued at, give us a call at NextHome SunRaye Realty, and we can tell you exactly what it’s worth, answer all of your questions, and provide you with the best strategy for selling in this market. Get the best knowledge, expertise, and leadership at NextHome SunRaye.