September Surprises in Tampa Real Estate 🎁🏡

Dear Tampa Bay real estate enthusiast,

As we navigate through the month of September, I wanted to provide you with an update on the ever changing state of the Tampa Bay real estate market.

1. Market Activity: We've observed a decline in market activity in recent weeks. While buyer demand remains lower than early this year, it is still higher than this time last year (when rates were soaring at the fast pace in decades). If you are considering selling your home before the end of the year, timing is now more important than any other point in the year. 

2. Interest Rates: The driving force behind market dynamics continues to be interest rates. With rates holding steady in the 7% range and trending higher in recent weeks, some prospective buyers have adjusted their expectations or explored homes at different price points or put their searches on pause. If rates drop closer to 6%, I expect demand to soar and if they continue climbing towards 8%, it should dissuade more buyers. It's worth noting that approximately 23% of home purchases this year in Tampa were all-cash transactions, and in St. Petersburg, this figure rises to nearly 43%. This cash-driven market activity has helped sustain momentum despite the relatively high interest rates.

3. Inventory: Inventory levels remain around 2.5-3.5 months' supply, which continues to favor sellers. However, there has been a recent increase in listings over the past month, offering a glimmer of hope for a potential improvement in inventory over the next 12 months. Despite low inventory, many homes are spending more time on the market due to seasonal variations and sellers who are holding out for 2022 prices. Yet, well-priced and updated homes in desirable locations still garner multiple offers. Properties that are priced to high are sitting and experience less traffic and competition, but properties in more remote areas are seeing less demand across the board. 

4. Cash Out Refinances: Lenders have reported a growing popularity in cash-out refinances among homeowners seeking to tap into their home equity. This trend could serve as an early indicator that some homeowners may choose to sell their properties sooner than they planned due to evolving financial situations.

5. Investor Market: Investors are actively searching for opportunities, but there is a scarcity of attractive deals. The investor premium added onto mortgage rates has made it challenging for investors to achieve favorable returns. Consequently, investor purchases have decreased by nearly 50% compared to the previous year, reflecting the impact of price levels, interest rates, insurance costs, and property taxes.

Every property and area within Tampa Bay possesses its own unique nuances, which influence market dynamics and present diverse opportunities. As always, I am here to help you navigate these nuances and make informed decisions. If you have any specific questions or would like to discuss the market in greater detail, please do not hesitate to reach out to us. In the meantime while we transition into our beautiful fall weather, now is a great time to start strategizing if you are looking to get a deal and plan to catch the next busy season to get top dollar for your home. Stay cool and it will be the holidays before we know it. 

- Geoff