A lot of people are asking where Tampa home prices are heading in 2020, and what the median home price in Tampa will be.
Heading into the spring/summer buying season, the expectation is that Tampa will continue to outperform the national market. This is because it is boosted by a strong local and state economy, home prices that are below the sky-high level of other coastal cities, and the availability of new homes being constructed by builders like Domain Homes.
Now, just a few months into the year, Tampa is heading into the spring home buying season with a strong advantage over other major metros across the country.
How Does The Housing Market Look at the National Level?
At the start of the last year, there were questions about the nation’s housing market, which has been red-hot throughout most of 2017 and 2018.
The supply of homes for sale was below the demand among prospective buyers, so prices soared even when sales slowed. That wasn’t because of flagging interest among buyers, but low supply of homes to purchase.
However, in Tampa affordability will remain its main strength in 2020. Tampa home prices are still lower than in other major metropolitan areas. For example, according to a report by the Council for Community and Economic Research, Fort Lauderdale had the highest cost of living in Florida and Denver had the highest cost of living nationwide.
The report concluded that in 2018, the bay area was one of the nation’s most reasonably priced areas to live in.
In January, home prices rose at the slowest pace in nearly seven years and in 2018 they increased at a 6.6% gain from 2017, according to the property data site CoreLogic.
January showed the smallest gain since August 2012, which CoreLogic attributed to a spike in mortgage interest rates last fall.
However, CoreLogic is not predicting that the housing market will slow down this year, since fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and are now lower than a year ago.
CoreLogic and others are predicting a solid home buying season this spring, and an end to the “price chill.”
That’s also true because buyers are still competing with one another for a limited supply of listings for sale.
Tampa Homes Prices in 2020 Should Remain Affordable
Florida has one of the nation’s strongest and healthiest economies, as the state continues to add more jobs while the unemployment rate is at 3.3%, below the national average.
Additionally, in 2017 and 2018, Tampa added more than 30,000 new jobs a year, the second-highest among the state’s metro areas.
At the same time, Tampa is among the cities that offer both jobs and a cost of living below many other cities across the U.S. That’s a key reason why housing market specialists think Tampa continues to be a great option for homebuyers in 2020.
Tampa is coming off a very strong 2018 when the city had a year-over-year price increase of 9.8%. In fact, since 2012, home prices have risen 120% in Hillsborough County. According to Zillow, the median price of homes currently listed in Tampa is $300,000 while the median price of homes that sold is $228,000.
Additionally, according to Zillow‘s 2019 Best Markets for First-Time Buyers Analysis, Tampa is the #1 market for first time home buyers. This is the second year in a row that Tampa tops this list and if the market keeps going strong it won’t be the last.
The bottom line is that Tampa has excellent pricing compared to other markets around Florida and the nation, with an affordability index that’s still very desirable.
That’s helping to fuel Tampa’s real estate market as more people move here. For the past 5 years, Tampa has benefited from strong yearly migration of newcomers, and Forbes has ranked Tampa as one of America’s Fastest-Growing Cities.
Tampa Home Prices in 2020, Homes By Domain Homes
Another benefit for Tampa is that even though land remains expensive and the number of lots you can build on keeps decreasing, inventory is growing.
Norada Real Estate Investments reports that construction activity in the Tampa real estate market went up nearly 12% in 2018, with 20,000 new permits being issued, and Tampa may become among the best markets for home-building activities in 2019.
It helps that home builders like Domain Homes are still actively constructing new houses here to meet rising demand. As more and more people relocate to the Tampa/St. Pete area, the housing market needs new homes to accommodate them.
Domain Homes is the Tampa area’s Urban Neighborhood new home builder. Domain Homes procures sites in Tampa’s most highly desirable and sought-after neighborhoods, taking older, dilapidated homes that are often badly in need of repair and replacing them with move-in-ready new homes.