Home prices in the Tampa Bay area continued to climb this fall, with prices increasing by double digit percentages in both September and October.
Sales prices increased by 13.6% in September alone across the bay area, the highest in the state. In October, prices continued to climb in Hillsborough, Pinellas, Pasco and Hernando counties.
The surge in home prices across the United States has led to the average price of a single-family home reaching the levels they attained before last decade’s recession. They are still lower in areas that saw the highest prices in 2006. Home sales in Florida at the time reached $250,800.
However, home prices in the Sunshine State have increased 12 percent in the last year, and the Tampa Bay area is among those leading the way.
Huge Jump in Hillsborough County Home Prices
In October 2016, the average sale price for a single-family home in Hillsborough County had its biggest jump in 9 months, rising 16 percent to $220,000.
Other counties in the region also had big gains, according to the Tampa Bay Times:
- Pasco County had a 17.4 percent gain in single-family homes prices, reaching $179,900.
- Pinellas County had a 15 percent gain in single-family home prices, reaching $206,500.
- Hernando County had a 13 percent gain in single-family home prices, reaching $141,500.
- In all the bay area, the most expensive transaction was the purchase of a $6.875 million home in Safety Harbor on Old Tampa Bay.
- In Tampa, a 5,000-square-foot home sold for $2.857 million in October, making it the highest-priced home sale in all of Hillsborough County that month.
Economic Indicators Improving
According to the latest monthly report from the Tampa Hillsborough Economic Development Corporation, many key economic indicators continue to move into positive territory. Much of this can drive further growth in the real estate industry as people move into the area and employment improves for those who already live there.
The report indicates that employment increased in some of the biggest areas of the Tampa Bay economy in September 2016 when compared to September 2015. They include:
- A 4.6 percent increase in construction jobs, to 68,800.
- A 2.4 percent increase in retail trade jobs, to 160,700.
- A 6.2 percent increase in real estate jobs, to 27,300
- A 3.9 percent increase in professional and business service jobs, to 227,600
- A 4.2 percent increase in leisure and hospitality jobs, to 150,600
In all, Tampa and Hillsborough County saw a 2.5% increase in employment, to 1.282,400 workers.
People also are spending more. Gross sales in September 2016 were 7.4 percent higher than in September 2015. The total amount of sales rose to $5,869,594,604, according to the report.
All of this indicates that the overall economy, and the real estate market along with it, continue to move in a positive direction in the Tampa Bay area. Therefore, as economists ready their forecasts for 2017, the area should be among those areas expected to have strong growth in the improving Florida economy.