South Tampa Real Estate Report
South Tampa Real Estate Market Report | March 7, 2018 - March 13, 2018
Homes continue to move quickly in S. Tampa. Look at the average days on market for all but the luxury market ($1M+)....we're seeing single family homes selling in less than 50 days and right around 30 days for townhomes and condos. These numbers indicate a continued strong demand for S. Tampa real estate despite rising prices and interest rates (up 1/4% since last year). Those numbers are also causing a little concern among the buying public, as indicated by the question I've received from many of you, "Are we in or approaching a bubble?" In the sense of an '06 bubble, I can definitively say "no." The metrics simply aren't in place to support the catastrophic decline in home prices we witnessed after the '06 bubble burst, especially from the lending side of the equation. I do expect to see some downward pressure on pricing in the next few months, probably after the spring market run as we have seen in years past. However, the anticipated price decreases won't resemble or be the result of a bursted "bubble." The price adjustment will, in part, be due to prices hitting a natural ceiling where buyers simply can't afford or aren't willing to pay "market" price. If you take a look at the graph I published a couple of weeks ago (linked here), you'll see the natural ups and downs of pricing...hit the ceiling and prices drop...hit the floor and they come back up. I'll keep an eye on things and update you in a future report. Have a great week!
Sincerely,
Michael J. Palermo
