South Tampa Real Estate Market Forecast 2023

South Tampa Real Estate Market Forecast 2023

  • Bret Crino
  • 08/29/23

South Tampa is a thriving area in Tampa, Florida. This large peninsula community is surrounded by Tampa Bay and is a primarily residential and commercial area. With its upscale neighborhoods and water access, people are attracted to the area for vacations and full-time living. From Hyde Park to Bayshore Boulevard, there are excellent areas to explore with high-end shopping, dining, and entertainment.

From elegant waterfront properties overlooking Tampa Bay to charming bungalows nestled in cozy neighborhoods, South Tampa features luxury housing options and a robust real estate market. Homebuyers can find great schools, private neighborhoods, and proximity to world-class shopping and dining. If you are ready to buy or sell your South Tampa home, researching the local market is the best place to start.

Why local trends and data are critical

Real estate market data serves an essential purpose in the industry. It provides insight and analysis into the trends and patterns of the market, including pricing and demand. This information is vital for investors and industry professionals to make scholarly decisions about buying, selling, and developing properties. Without reliable market data, these decisions would be based solely on assumptions and anecdotal evidence, leading to potential financial losses and missed opportunities.

A comprehensive view can help buyers and sellers make decisions

When analyzing South Tampa real estate market data, looking at trends over multiple months rather than just a single time period is crucial. This is because short-term fluctuations in pricing and demand can be misleading and mask the broader patterns at play. By studying data over a longer horizon, investors and professionals can identify the true market trends to determine the best time to buy and sell or what to expect when entering the market. Consistency and reliability in data analysis are key to success in the real estate industry. Buyers and sellers ready to make a move should look at past and current data to determine future indicators.

A look at the current South Tampa housing market

Average home prices are increasing

The average sale price is found by dividing the total sales in dollars by the number of sales, making the statistics more sensitive to high-end homes in the region. For single-family homes, the average sale price in Hillsborough County was more than $531,000 in May 2023. While this price is down nearly 2.5% from May 2022, the average sale price increased in 2023. In January 2023, the average sale price was $510,000, slowly hiking to its current price, and is likely to continue on this upward trajectory.

As home prices rise, buyers and sellers must pay close attention to market trends to stay ahead of the game. Increasing prices is an advantage for sellers because they can make a greater profit, whereas buyers may want to act quickly before prices jump even higher.

Time on the market is decreasing

The average time on the market is critical for buyers and sellers to determine market conditions. The median time to contract for homes in Hillsborough County was 19 days in May 2023, up by more than 200% from six days in May 2022. Though homes are on the market longer than last year, the median time to contract is decreasing from 38 days in January 2023. The median time to sale in May 2023 was 62 days, up nearly 50% from 42 days in 2022.

While homes are on the market longer than in 2022, it is not necessarily bad and can indicate a more stable and fair market. When homes fly off the market, many other factors are at play, like bidding wars and over-valued homes. With more time on the market, buyers priced out of the market in 2022 have a better chance of securing a home. However, 19 days to contract is still rapid and is an advantage for sellers, as it can indicate low supply and high demand.

Active inventory is decreasing

Active inventory is the number of homes available for sale at the end of every month. In Hillsborough County, the number of single-family homes for sale in May 2023 was 2,424, up 28% from less than 1,900 homes in May 2022. While this year-over-year change looks good, it is essential to look at the data for 2023.

In January 2023, the active inventory was more than 3,000, slipping to 2,600 in March and to less than 2,500 in May. This data shows that active inventory is decreasing, which can mean increased demand, impacting sale prices and days on the market. Decreasing active inventory can put sellers at an advantage because buyers have fewer homes to choose from and may be pushed to offer more to secure a house. It can also tell buyers that the coming months may be increasingly difficult to secure a home, and prices will continue to rise.

Navigating the market with an expert real estate agent

Access to reliable and accurate real estate market data is crucial, but interpreting that data can be a challenge, even for experienced buyers and sellers. Working with a knowledgeable realtor is vital to accessing up-to-date data and understanding what it means for your real estate goals. A realtor can interpret the data and use it to predict what the market will look like in the coming months. By leveraging this knowledge, individuals can make decisions about their real estate portfolios and investments, ensuring their long-term success in the industry.

Bret Crino is an expert South Tampa real estate broker leading a team of professional agents committed to first-class services and client advocacy. Explore upscale South Tampa neighborhoods and see what the local market has to offer by contacting Bret and his team today.

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