It’s not exactly hot-off-the-press breaking news that the South Tampa real estate market has come roaring back and continues to run at full speed. We’ve all seen homes in our neighborhood sell as soon as they hit the market. It seems like new homes are being built on every block. And we can read in the newspaper about the increasing sales prices. So there’s no need for me to tell you what you already know, …about how homes are once again selling for more than the listing price, … about how lots are at a premium, … or about the shortage of good homes on the market. You already know that.
One of questions I am frequently asked is, “Has the market come back to where it was?”
The answer is not totally clear. Sales prices have made a substantial comeback: up 35% from the low point in the third quarter of 2011. But the average sales price is still about 30% below the peak in the summer of 2007. On the other hand, the number of transactions for this past month is almost double the number for July of 2007. So it depends on how you define “where it was.” My answer is that the market is much healthier today than where it was.
Here are some interesting stats from this month’s South Tampa Real Estate report:
The Year To Year Comparison, which takes into account both prices and number of sales, is up 35% from last year and 53% from 2011. The number of active listings continues to decline – down 20% from last year and 40% from the year before. In July of 2010 there were twice as many South Tampa homes on the market as there are today in 2013
The other question I get a lot is whether this market can be sustained. “How long can this last?” they ask. I wish I was smart enough to know the answer. A better question might be “What factors would cause this market to stall?” Interest rates could do it, but the projected increases are slight. A reverse in the trend towards greater employment could affect demand, but that doesn’t seem likely. Runaway prices that push homes beyond affordability…. that could happen. But most likely we’re going to see prices begin to stabilize and a slight – but very slight – cooling of demand, resulting in a strong, healthy, and sustainable market.
And there’s that other burning question that seems to come up in every conversation: “Are the Rays going to make the playoffs?” If I knew the answer to that one, I would be in Vegas instead of writing this report.
The Southside Report is a compilation of sales data derived from MLS that isolates the South Tampa market and breaks sales information into the four zip codes in our area. You can access the full 6 page report here: South Tampa Real Estate Stats
Bruce M. Tigert
Bayshore Title, Tampa