After a year of slower sales, the Tampa Bay housing market could fall further as hurricanes and rising costs impact buyers and sellers. Tampa Bay’s real estate market, once thriving, now faces higher prices and fewer out-of-state buyers, especially with increasing insurance costs.
Tampa Bay’s Cooling Market
The Tampa Bay housing market has outpaced national trends, but high prices are finally cooling demand. Daryl Fairweather, Redfin’s chief economist, noted that COVID-19 brought peak growth, but the region’s high prices have slowed the market. Greater Tampa Realtors reported that the median price for a single-family home fell by 1.4% year-over-year to $408,990 in September. In five years, prices jumped nearly 65%, from $248,000. Home sales dropped even more, down 17% from last year and 33% over five years.
“Florida is no longer the deal it once was,” says Fairweather. Rising insurance premiums and property taxes now turn off out-of-state buyers, who were once Tampa Bay’s lifeblood. Recent hurricanes have heightened fears about settling in storm-prone areas.
Limited Inventory and Hurricane Impact
Tampa Bay has an inventory shortage, with only a four-month supply of homes in September. Hurricanes Helene and Milton made the shortage worse by damaging many homes. Craig Beggins, CEO of Century 21 Beggins Enterprises, said the storms made an already tight market even more challenging. Some sellers now hesitate to list homes, unsure of where they’d move or worried about getting fair prices.
Local investor Josh Streeter, for instance, delayed selling two rental homes in St. Petersburg. “If someone hears they have to pay flood insurance right now, I don’t know what that will do to the value,” Streeter says. He believes these storms will be on buyers’ minds for a long time.
Damaged Listings and Price Cuts
Storm-damaged properties are entering the market as “as-is” or “for land value” listings, often at reduced prices. One home on Oregon Ave. in Shore Acres, initially listed for $535,000 before the hurricanes, is now listed at $385,000. Streeter also reports hearing about off-market short sales—something not seen since the 2008 housing crash.
With more distressed properties, homeowners may consider cash deals with investors for a fast exit. But Beggins warns about “low-ball” offers from bad actors hoping to take advantage of desperate sellers.
Tips for Sellers
For those thinking of selling, Beggins advises waiting until they get insurance information. Some homeowners might qualify for mortgage forbearance, which provides temporary relief from payments while they explore options. Insurance settlements and mortgage assistance could help them make smarter decisions.
Looking Ahead
Tampa Bay’s real estate market faces unique challenges. High prices, recent hurricanes, and economic concerns have slowed the once-hot market. Buyers are more cautious, and sellers face uncertainty. However, homeowners who stay informed and act strategically can still navigate Tampa Bay’s shifting market.
Source: Tampa Bay Times
