Our in-depth study of the Tampa housing market has led me to pursue a more thorough understanding of “why” the Tampa real estate market appears to be rebounding faster than the rest of the State of Florida. Today’s two real estate graphs shed some light on the two faces of the Tampa real estate market.
Home sales in Tampa have been returning to levels seen before the boom of the housing market 8 years ago. When we perform a price range analysis, we see which zones are most active now and contrast them with what we observed as far back as 2006.
The two yellow highlight comments in the graph provide a very clear image of what is going on in the Tampa real estate market. One the left, we see that very few properties sold in 2006 below $100,000. On the far right however, we see that nearly 1/2 the market is homes priced below $100K. I suspect this is a sign of distressed properties clearing the market to investors.
So if you own a home in Tampa, or even have a home for sale in Tampa, follow your price range from left to right. Let’s say, for example, you have a home valued between $200,000 and $300,000. The green slice of the graph shows your price range was roughly 30% of the market in 2006, and today it is about 5% of the market. The number of sales in your price range has dropped substantially, and this mirrors what we are seeing in much of the rest of Florida.
But I was also curious to see what the "market" would look like if we omitted all home sales below $100, and the following graph makes the resulting Tampa real estate market start to look like the rest of the State of Florida.
This graph shows that the current rate of home sales in Tampa is at about 1/2 of the level found at the peak of the housing market. We know (from our recently posted Tampa Housing Reports) that homes above $250K are still very much in a buyer's market due to the glut of supply, so like the rest of the State of Florida, Tampa is going to require some time to reach market equilibrium at all price points.