2022 Fourth Quarter Tampa Bay Real Estate Trends
Home sales continue to slow in Florida. It is unclear how much is related to the month-end impact of Hurricane Ian and how much is associated with an overall slowing in the market. We are seeing a better balance between buyers and sellers, reducing the frenzy of buying a home with multiple offers.
Inventory at the end of September was stable, with Hurricane Ian reducing anyone planning to list their home. Homes for sale are above the past two years but still substantially below 2017 levels.
September home sales dropped by 23% from August and 40% below 2021. A significant portion of the drop results from delayed closings due to the storm. Even without that, we anticipate a continued cooling of sales for the remainder of the year.
Home pricing has leveled out with a 1% drop in the average price in September ($5,000) which still represents a 15% increase over last September. Existing homeowners still have significant home equity, which will make moving to a new home more accessible.
Finally, interest rates remain the most significant influencer in the market right now. The 30-year mortgage rate climbed to 6.7% at the end of September (and climbing). With the slowdown in the economy and active Federal Reserve actions, we hope to see a cooling of inflation by the 1st quarter of 2023.
Tampa Bay remains a very desirable place to live, work, and play. We have great weather, a vibrant economy, an excellent tax structure, a favorable business climate, and friendly people, which continues to bring more and more people into the area. All of that is good news for all things relative to real estate.
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