South Tampa Real Estate Report
South Tampa Real Estate Market Report | 6/12/22 - 6/18/22
After reviewing all of the economic news from the past couple of weeks and listening to opinions of multiple economists, I've come up with a few predictions concerning the South Tampa real estate market over the next year. Save this post so we can check back in a few months to see if my crystal ball is any good...
* Interest rates will remain in the 5.5% - 7.0% range. Rates are currently 5.78% and were 3.22% at the beginning of '22 ("+" in the fight against inflation; "-" for buyers who are now priced out of the market)
* Inventory levels will rise, meaning more choices for buyers and a less competitive bidding process. Overall South Tampa inventory has risen 110% since the beginning of '22 ("+")
* Inventory levels will not rise to a level of shifting the market from a seller market to a buyer market. There is simply too much demand for the area and not enough homes ("+" for sellers; "-" for buyers)
* Home prices will decelerate, meaning home prices will continue to appreciate, but at a slower pace, think 5%-7% instead of the 15%-20% we've seen the past couple of years ("+" for the market overall as recent gains aren't sustainable)
* Rents will remain high due to continued low inventory and higher interest rates ("+" for landlords; "-" for renters)
* Supply chain issues will begin to resolve themselves towards the end of the year ("+" in the fight against inflation)
Have a great week!
Michael Palermo
