With over 10,000 homes for sale in Tampa currently listed in the Tampa MLS, buyers have many choices to review when they go shopping for a home in the higher price ranges. But homes priced below $250K are actually fairly competitive for buyers, while homes above $500K have so much supply that it will take years for the market correction to finish.
The real estate graph below shows recent sales and current listings by price range in the Tampa MLS, through August of 2011.
The red bars measure the number of homes currently on the market in Tampa, while the green bars shows the number of homes sold in Tampa in August 2011. The blue line is the measure of relative supply of homes based upon the past year’s number of homes sold in each price range. Note the yellow shaded area which represents the level each price range needs for equilibrium. For the most part, homes priced below $250K are at equilibrium (historical norm for balance between supply and demand), while price ranges above that point are still in a buyers market.
Only the homes between $0 and $249,999 register at a relative supply level that would be considered “normal” or balanced. All other price ranges are at levels that demonstrate a buyer’s market. Note how the blue line explodes after $500,000! When we see relative supply exceed 1 year and two years and three years, home sellers in those price ranges need to gain a better understanding of their current home value and what is going on with their competition.
You can stay current on the Tampa housing market by saving this link to Tampa real estate market reports.