More Buyers, Less Inventory Push Up Tampa Bay Home Prices
The supply of all types of Tampa Bay homes has been lingering at a low four months’ supply for many months now. And this is one of the reasons why the median and average prices of Tampa Bay homes have been steadily rising.
Based on data from the My Florida Regional Multiple Listing Service Inc., the median sale price of all types of Tampa Bay homes has gone up to $ 164,000 in February 2016, up by 15% from February last year and up by a stunning 82% from February five years ago.
Data covers all residential properties in the Tampa Bay counties of Hillsborough, Pinellas, Pasco and Hernando. These counties also form the metro area often called Tampa-St. Petersburg-Clearwater metro area.
MEDIAN SALE PRICE of All Types of Tampa Bay Homes Sold from February 2006 to February 2016
|Month||Median Sale Price|
|Feb 2006||$ 210,900|
|Feb 2007||$ 203,900|
|Feb 2008||$ 173,063|
|Feb 2009||$ 125,000|
|Feb 2010||$ 119,000|
|Feb 2011||$ 90,000|
|Feb 2012||$ 102,000|
|Feb 2013||$ 121,850|
|Feb 2014||$ 130,000|
|Feb 2015||$ 142,550|
|Feb 2016||$ 164,000|
As you can see in the table below, Tampa Bay’s housing inventory has been on a downward trend since the 10-year inventory peak in February 2007. From month to month, the supply decreased, and in February this year, the total went down to 18,530, not even half of each of the totals in February 2007, February 2008 and February 2009.
Tampa Bay’s housing inventory for many months now represent only four months of supply. Theoretically, if no new inventory comes, all available homes for sale will be gone in four months.
Real estate analysts say that in many real estate markets, when the housing supply goes below 6 months, the market is a seller’s market, meaning there are more buyers than homes available for sale. There are more buyers competing to buy a certain home. We can therefore argue that the Tampa Bay real estate market is a seller’s market.
Another thing that indicates Tampa Bay’s being a seller’s market is that sellers are getting their desired sale prices. For the past several months, sellers have been getting 96 to 97 percent of the price they wanted for their house to get sold for.
TOTAL NUMBER of All Types of Tampa Bay Homes Listed for Sale from February 2006 to February 2016
|Month||Number of Homes for Sale|
TOTAL NUMBER of All Types of Tampa Bay Homes Sold from February 2006 to February 2016
|Month||Number of Homes Sold|