Tampa, sometimes referred to as “The Big Guava,” is one of the fastest growing metro areas in the United States. As Florida’s third most populous city, Tampa, along with surrounding St. Petersburg and Clearwater have experienced rapid job growth as corporations and families have flocked to the Sunshine State’s Gulf Coast.
With that growth comes rising home prices and interest from investors. In 2021, 1 in 4 houses in the Tampa area were sold to an investor, sparking swift home price appreciation and worsening affordability for many Floridians.
Over the past year, Tampa has seen an 18% increase in the average price of a home listing, with rental prices seeing even steeper increases at 30%.
Home Prices in Tampa continue to rise
Right now, Tampa is forecasted to be the 10th fastest growing real estate market in the country through 2022, a fact that offers little relief to prospective homebuyers and those concerned with home prices in the region.
Tampa’s favorable living conditions and strong local economy have attracted people from around the country and made Tampa a popular relocation destination. But what has made Tampa such a desirable place to live has also drastically altered the local real estate market. Increased competition in the market has added to the worries of those looking to purchase their home – especially first time buyers.
Prior to the pandemic, in 2020 there were approximately 13,000 homes for sale at a given time in Tampa. Today there are just over 3,000 active listings. Currently, the Tampa metro area is at an all-time inventory low and with an influx of ready buyers moving in, home shoppers must be ready to bid above asking price to secure a home. Right now, nearly 50% of homes are selling over list, compared to just 25% at this time last year.
Housing inventory has hit record lows
With the recent federal government decision to begin implementing base rate hikes to counteract mounting inflation, a buyer frenzy has been triggered. Individuals trying to lock in the best possible terms in advance of increasing rates are pushing competition in the market to levels never before seen.
Migration trends and investor interest are also responsible for the increase in competition. Estimates from late 2021 indicate that almost a third of online home shoppers in the Tampa area were from out of state, specifically New York, DC, LA, Boston, and Chicago, where the average price of a home is significantly higher and people have been looking to capitalize on remote work flexibility and lower cost of living.
The increased demand from around the country in conjunction with the investor activity in the region have made the market ripe for cash offers to successfully secure a home.
Currently, cash offers are four times more likely to be accepted by a seller making the region a sellers market but putting Tampa’s middle class at a significant disadvantage.
Tampa’s real estate market has reached unprecedented heights
At Divvy, we’re on a mission to make homeownership more accessible for everyone. We can help Tampa keep pace with the competition with an all-cash offer and terms that reflect the current market conditions.
- No appraisal contingency
- A two-week close
- Inspection waivers on eligible homes
- 100% Cash
In a market where almost half of homes listed sold above asking price, Divvy managed to win 53% of the time. With most home shoppers extending upwards of 5-10 offers before securing a home, Divvy customers can rest easy knowing that the majority of customers secure a home in 1-2 bids.Want to learn more about how Divvy can help you secure your next home? Apply here and get your journey to homeownership started with Divvy.