Across the country, in most metro areas, housing prices are rising as a booming economy keeps fueling buyer demand for new homes. But some cities appear to be doing better than others.
It’s been well-reported that home prices are soaring in California. That’s where San Jose is, and is among the cities that have experienced the strongest home value appreciation in the past year. And further up on the West Coast, Seattle is seeing home values soar.
But did you know that another city experiencing the biggest increase in home values is Tampa?
According to a recent report by the real estate website Zillow that examined national home values, Tampa experienced one of the nation’s fastest jumps in home values.
Zillow’s Home Value Index reported that nationally, home values rose 6.9 percent from August 2016 to August 2017, to $201,900. The study also found that nationally, the housing market is on a sharp upward swing. More than 50 percent of U.S. homes have hit or surpassed the value they reached during the last housing boom period between 2004-2007.
Home values in Seattle, Tampa and San Jose saw the strongest appreciation. In Tampa, home values rose 9.3 percent over the past year, above the national average. That’s impressive and a sign that the city’s real estate market has hit its stride.
So how did Tampa end up alongside cities like Seattle and San Jose?
The Tampa Bay area’s numerous urban assets
The Tampa Bay area started off the year with strengths that other cities would love to have. Those assets are propelling the real estate market. And one, quite simply, is jobs.
A lucrative real estate market is usually associated with a booming job market, and Tampa has one of the nation’s strongest. The unemployment rate in Tampa was 3.8 percent in July. That’s below the national average of 4.2 percent. And the city is doing well creating jobs in good paying fields like science, technology, health care and engineering.
This has also helped to make Tampa an appealing city for real estate investors.
The Tampa Bay area is also attracting newcomers for another reason: the word is getting out about the high quality of life there. This has made Tampa a major draw for millennials. They’re looking for not just jobs and affordable homes, but also the ability to live a culturally diverse lifestyle in an exciting city. Tampa offers them nearby beaches, theme parks, major cultural attractions, and a thriving brewery scene.
Not surprisingly, Tampa continues to be one of the hottest cities in the nation to relocate to. That includes for first time homebuyers. Both Zillow and the real estate website Ten-X have reported that Tampa Bay is one of the top cities in the U.S. for first-time homebuyers in 2017. That’s based on a lower than average median home value and a strong forecast for home values rising in the future.
The newly-released S&P CoreLogic Case-Shiller home price index bares that out. The report tracks prices in 20 major metropolitan areas nationwide. And it found that in Tampa, prices rose 7 percent in July, higher than the national average increase of 5.9 percent.
Tampa’s price: still affordable, and inventory is decent
Prices in Tampa were up this summer even though sales dropped nationally in July and August. The National Association of Realtors reported that fewer people signed contracts to buy homes in August. That marks a 2.6 percent fall in sales.
However, the drop isn’t because the housing market is suffering from fewer and fewer buyers interested in purchasing a home. It reflects the worsening shortage nationwide of homes being listed for sale. An economist for NAR is projecting that by the end of the year, existing home sales for 2017 will be 0.2 percent lower than last year because of the low inventory.
Ten-X has also predicted that home sales will continue to slow down in the fall. The latest Ten-X Residential Real Estate Nowcast projects sales going marginally lower from current levels.
However, Ten-X Nowcast also predicted continued gains in existing home prices. That’s as buyers face a limited supply of homes for sale, and the competition heats up. The September Ten-X Residential Real Estate Nowcast predicts that by December, median existing home prices will rise 7.5 percent compared to last year.
Prices in Tampa Bay are rising thanks to the winning combination of the region’s strong economy and great lifestyle amenities. And unlike other parts of the country, the supply of homes on the market in Tampa Bay isn’t nearly as tight. That situation has been helped in part by builders like Domain Homes, who are continuing to construct new homes across the region.
Their building helps to provide buyers with great options for new, move in ready homes in the Tampa Bay area.
Domain Homes specializes in being the Tampa Bay area’s urban renaissance new home builder. We know where people want to live – in well-established and highly desirable neighborhoods like South Tampa, West Tampa, North Hyde Park, the Heights, and St. Petersburg.
That’s why we find older, dilapidated homes in these neighborhoods. We procure them, and then build brand new homes on these sites. In doing so, we provide buyers will the opportunity to live in great neighborhoods that are close to the best school districts, the downtown shopping and cultural amenities, and the beaches – and to let them live in a new home, rather than an older one in need of repairs and improvements.
Domain Homes is proud to be your premier urban new home builder in Tampa, offering buyers the chance to live the American dream in an up-and-coming city.
Contact Domain Homes today at 813-580-8111 to learn more about the homes we have available in this strong housing market. Start your home search with us today.