TAMPA, Fla. (WFLA) — Home prices are high in the Tampa market. It’s not a surprise by any stretch, as prices for rent and purchase have both climbed over the course of 2021 and into 2022.
According to new data from RE/MAX, the Tampa market was home to the second largest year-over-year price increase for house sales from March 2021 to March 2022. Prices jumped from a median sale of $275,000 to $355,000, or 29.1% higher in just one year.
The only metro in the country that had a bigger annual increase was Billings, Mont., where home sales rose 31.2%.
While prices in the area went down, the Tampa market also made it into the top five markets that RE/MAX said had the largest yearly decrease in days on the market for sale. Tampa time for sale went down 43.6%, from 39 days on average to 22, from March 2021 to March 2022.
As prices rose and days on the market slimmed, inventory also shrank, both yearly and month-to-month. The monthly inventory in the Tampa area went down 14.3% from March to March, though 25% compared to February 2022, according to RE/MAX. Along with shrinking inventory, RE/MAX reported sales in the area were down 9.3% compared to the year before, but up 23.4% in the past month.
“The market remains very active right now, especially on the demand-heavy buy side,” Nick Bailey, RE/MAX President and CEO, said. “You have buyers rushing to beat mortgage rate hikes as well as buyers ready to roll as soon as the right listing appears. Inventory remains the biggest concern for hopeful buyers, but with sellers watching homes get snapped up in record time, the idea of cashing in on their equity gain continues to have great appeal. If things heat up even more in the coming months, buyers may have more choices and purchasing power should additional sellers choose to join the action.”
Rising costs across the region have added to affordability concerns. MoneyGeek published an analysis of real estate and home affordability throughout the U.S. on April 12, finding that the Sarasota area had a 54.7% price increase over the past three years. The percentage of income a home costs having risen 65.3% in the same period of time.
According to data from the Beracha & Johnson Housing Index, which evaluates housing costs by how much of a premium or discount the list price is compared to actual value, the Tampa Bay area is home to three markets with a more than 40% premium for cost.
The Tampa market is up 46.05%, Lakeland is up 47.28% and the highest premium in the state, and Sarasota is up 40.48%. Those prices are based on data from February home sales. Lakeland and Tampa ranked 12 and 14 in the national top 100 for housing market price premiums.
Additional data from Point2Homes showed that only 5.43% of Tampa homes were listed under $150,000 while in St. Petersburg, only 12.34% were. The study called St. Petersburg an outlier, one of only two cities in their top 10 with more than 6% of homes available for prices under $150,000.
| Rank | City | Median Price | % Listed Under $150K |
|---|---|---|---|
| 1 | Mesa, Ariz. | $442,000 | 14.82% |
| 2 | Saint Petersburg, Fla. | $355,000 | 12.34% |
| 3 | Dallas, Texas | $400,000 | 5.94% |
| 4 | Tampa, Fla. | $360,000 | 5.43% |
| 5 | Honolulu, Hawaii | $870,000 | 4.92% |
| 6 | Bakersfield, Calif. | $353,000 | 4.75% |
| 7 | Santa Ana, Calif. | $779,000 | 4.39% |
| 8 | Fresno, Calif. | $365,000 | 3.72% |
| 9 | Riverside, Calif. | $608,000 | 3.64% |
| 10 | Sacramento, Calif. | $480,000 | 3.44% |
The survey by Point2 said the number of homes available for less than $150,000 did not “strongly correlate” with the share of affordable homes.
“For instance, some cities have many expensive homes, but also a decent stock of more affordable homes, while others seem to have no more room for more affordable units,” Point2 reported. “Zoning laws and land prices also play a major role in the affordability debate, but many other factors influence this aspect as well.”