If you hadn’t noticed, home prices in Tampa Bay have risen… a lot! The median sales price has risen 14% in the last year and closed sales from November 2013 to November 2014 increased 18.4%! In a real estate market that just 5 or 6 years ago was crashed and dismal, that is huge. Buying now is a good idea. Prices aren’t going to drop any time soon.
So if you’re wondering why prices have risen it might be for a few reasons. The improvements in the market are the biggest. The market, now a seller’s market, have improved over the last year or so for a few reasons as well. Mortgage rates are, and have been, low. That means that it’s less expensive for people to buy a home. It’s also great for first time home buyers. New mortgage programs help them as well. There’s a new 3-percent-down conventional mortgage available for first-time homebuyers. That means less expense up front for them, meaning the difference between homeownership or not.
More homes are selling
That 14% rise in median price means that more homes are selling. More transactions mean that prices go up. Especially prices for condos and townhomes. Condos and townhomes median price has risen a bit more than 19% over the last year. Even with those price increases, listings are becoming fewer and far between. That also pushes price up. With more competition for existing listings, bidding wars happen and prices rise.
So what does that mean for you if you are looking in Tampa Bay? Buy now! Prices will continue to rise and interest rates are slated to rise this year. Now is the time to become a Tampa Bay home owner.