Is Tampa Overpriced When It Comes To Housing Costs?

No, Tampa housing is not overpriced as a general rule. A particular house is overpriced for current market conditions if it has been on the market for a longer period of time than is average for that price point. That is assuming the home was properly presented online and in suitable condition. A median priced home in Tampa should sell within 1 to two weeks.

Tampa FL

Tampa's Most Overpriced Housing Markets

Tampa's most overpriced housing markets occur in what is known as a seller's market. Usually that means there are not enough homes on the market to satisfy the amount of buyers searching. A buyer's market is just the opposite.

We are probably going to be experiencing a buyer's market soon at least for cash buyers. It is easy to see coming because the number of sales slow, and the number of homes available increase. The Tampa housing market may not be a mirror image of the rest of the nation.

Overpriced Housing Markets Factors

Why is the supply of homes short of demand? One reason is replacement costs. By that I mean many people financed their homes when interest rates were below 4%. You may never see that again and will highly likely not see a 2% mortgage like some have. If you sell a million dollar home financed at that rate, you may not be able to afford a similar home at 7%. Why not just rent the home?

Location & The Most Overpriced Housing Markets

Davis Islands, Harbour island, Downtown Tampa and South Tampa all have one thing in common. That is the likelihood of finding available land to build on is near zero. The competition pool is very limited and predictable. Similar to a high rise condo it is fairly easy to price homes. If you want to live there, you just have no choice but to pay.

Overheating Economy & Immigration Equal Higher Home Prices

Capitalism is awesome on a small scale. On a larger scale every system has it's challenges given enough time. Right now the economy is slowing and money is actually more difficult to borrow and for some to even come by. The Federal Reserve currently does not want poorer people to have as much. That is the end result of higher interest rates. That will also have a trickle up affect and it is beginning to do just that.

Median Sale Price Vs Average Home Prices in Hillsborough County & Tampa Area

To keep an eye on any housing market here are some good tips. Find the median price of a home, then the number of sales per month. Track those numbers and not the average prices. The median sales price will give you a better representation because it is less affected by extremes. If the price moves over 2-3% in a month you may have a situation that needs paying attention to is a market as large as Tampa Bay's.