As we enter March, the Tampa Bay housing market is continuing to throw us curve balls. For the past several years, February has always been a month that the market heats up or is already hot. Usually fueled by our snow bird friends and families from up north deciding they have had enough of the cold. However, this year we saw a much slower February market. The most likely reason is the surge in interest rates back above 7% that we saw coming into February along with the increased premiums for homeowners/flood insurance. With that said, in the past week rates have started to decline slightly and we are seeing the market pick up. This clearly shows that interest rates are going to have a direct impact on demand and listing the wrong week could be the difference between getting multiple offers or sitting on the market and a buyer negotiating down the price.
Interest Rates: To start the year the average 30 year mortgage rate was in the mid to high 6% range. February had interest rates surge back into the low to mid 7% range. As we enter March, interest rates have slowly declined and are hovering around 7%.
Buyers: Buyer demand remains strong in desirable areas and for renovated homes. Areas further from city centers and homes that need repairs/updates have a much smaller buyer pool. For those buyers looking for a second home or looking to be along the beaches, inventory is piling up for many older homes and older condo buildings. Newer homes that are built to current code and floor regulations along with newer condo buildings that aren't susceptible to the milestone inspections are still selling and benefiting from the reduced demand on competing properties.
Sellers: If you are thinking about selling. Timing is more important than usual this year. Between the volatility of interest rates and a presidential election looming, buyer demand will be very sporadic. With that said, some areas of the market are moving slow enough that it may be best to do some cosmetic updates to help differentiate your home from others in your neighborhood. The key is making your stand out among the competition and pricing your home correctly from the beginning is critical.
Inventory: After years of historically low inventory, we are starting off 2024 with more inventory than 2023 and inventory is still on the rise. I am hearing and seeing more inventory that should be coming on the market in the coming months, but we are returning to prepandemic levels of inventory.
Although the 2024 real estate market is off to a slower start, there are reasons to be optimistic. With the federal reserve signaling plans to cut interest rates this year and with 2024 being the deadline for condo buildings to have their milestone inspections completed, many are hoping that 2025 will be the year that the market has clarity and regains its strength.
As always, every property is different and every building/community has its own nuances. If you have any questions about a specific property or the market, feel free to call or message me any.
