The Tampa Bay area’s home prices surged 17 percent in June. It was fueled by a lack of inventory as more buyers than sellers flood the Bay area market.
The increase was the largest year-over-year jump since summer 2015. This was the second highest increase of all of Florida’s metro areas, according to the Tampa Bay Times. The number of homes sales showed no increase from last June.
Hernando County prices saw the biggest increase: the median sale price of a single-family home jumped 21.6 percent over last June’s prices to $143,500. Pinellas County went up 19 percent to $220,000, while Pasco and Hillsborough prices increased 15.6 percent ($185,000) and 11.2 percent ($229,000), respectively.
Across the state, only Sebring’s 20.4 percent price increase in June exceeded the Tampa Bay area’s 16.7 percent jump, the largest increase since July 2015. Statewide, the median single-family home price rose 10.8 percent to $225,000.
What’s Driving the Summer Market?
Bank-owned and short sale listings are at their lowest levels in ten years, the Times reports. And the surge is being driven by the overall tight supply and pent-up demand, Realtors say. Some homes are selling within days of listing, often with multiple offers, agents report.
Buyers who may have been waiting for prices to stagnate seem to be jumping into the market as prices continue to rise, anxious to get in before prices increase further. Historically low mortgage rates are allowing buyers to purchase higher-priced homes, but if rates don’t continue to decrease and home prices continue to increase, buyers know they will eventually be priced out of their desired neighborhoods. For many buyers, the time is now.
But the number of sellers just isn’t keeping up.
Semi-urban areas in good school districts and areas such as downtown St. Petersburg are seeing the largest spike in buyer demand, according to local Realtors.
Two popular zip codes, Carrollwood/Northdale’s 33624 and Seminole/Largo’s 33778, are experiencing significant booms, agents say. Homes in these areas are selling for 100 percent or more of their list prices.
Previous reports indicated a slowing of home prices and a shift to a buyer’s market, citing a stagnating pace in some South Florida markets. Plateauing prices were expected to increase the number of homes remaining on the market for extended listing periods. Those predictions, thus far, have not panned out in the Bay area.
Instead, prices are skyrocketing in the single-family and luxury markets. A gulf-front home in Belleair Shore sold in June for more than $6 million, the top price for a home in the Bay area in June. The home had multiple offers within a week, the listing agent told the Times.