South Tampa Real Estate Market Prices, Trends and Forecast 2024

South Tampa Real Estate Market Prices, Trends and Forecast 2024

  • 360 Realty
  • 03/11/24

South Tampa has abundant lush green spaces calling for leisurely afternoons under the canopy of grand oak trees. Its picturesque waterfronts serve as the perfect backdrop for an array of activities, from tranquil morning jogs to sunset strolls, enriching the lives of its residents with breathtaking views.

Adding to its charm are the stately luxury homes, many of which feature sprawling lawns and direct waterfront access, making this community a lifestyle to be embraced. Whether you're seeking adventure or tranquility, South Tampa offers an unrivaled quality of life that's hard to find elsewhere.

South Tampa's real estate dynamics

South Tampa continues to flourish as a seller's market, a trend that has been consistent since last year. In a seller's market, demand outstrips supply, leading to a scenario where there are more buyers than available properties. This imbalance often results in competitive bidding wars, with homes selling at or above their listing prices.

This market condition is a golden opportunity for sellers to maximize their returns, as they will likely receive multiple offers, often exceeding their expectations. On the flip side, buyers face a more challenging landscape. They must act swiftly and decisively, sometimes stretching their budgets to secure a property in this highly sought-after area.

A closer look at current trends

Currently, the median home sold price is $643,420, which is about $362 per square foot. This figure has increased by 3.0% since February 2023, underscoring the area's enduring appeal and the upward trajectory of property values. Compared to the national median home price of $366,733, South Tampa's market operates at a premium, reflecting the high desirability of its location and amenities.

In a nuanced shift, in February 2024, 64% of homes sold for under the asking price, suggesting a slight softening in the market that could provide openings for savvy buyers. Conversely, 14% of homes still fetched prices above their listed value, indicating that well-positioned or particularly appealing properties can still command top dollar in this competitive landscape.

This mixed bag offers a strategic advantage for buyers with flexibility and readiness to act, and sellers remain in a strong position to capitalize on their investments. Navigating this market requires an understanding of its intricacies, as current trends provide unique opportunities and challenges for buyers and sellers in South Tampa.

Real estate in neighboring areas

As investors and potential homeowners assess the vibrant market of South Tampa, it's beneficial to cast a wider net and consider the real estate dynamics in nearby areas. Tampa's median sold price is $409,976, reflecting a marginal decrease of 0.2% since February 2023. This slight dip suggests a stable market that might offer more approachable entry points for buyers looking to invest in the broader Tampa area.

Moving towards Palm River-Gibsonton, the median sold price is $330,000, with a decrease of 1.3% over the same period. This area represents a more affordable option for those looking to enter the housing market, possibly attracting first-time homebuyers or investors seeking value purchases.

Saint Petersburg presents a contrasting trend with a median sold price of $431,826, marking a significant increase of 8.0% since February 2023. Saint Petersburg is in a neutral market, indicating a balance between buyers and sellers. This equilibrium suggests that both parties can negotiate deals without the pressure of rapidly escalating prices or intense competition, offering a unique opportunity for those looking to buy or sell in a less frenetic environment than a seller's or buyer's market.

The housing supply in South Tampa

The housing supply in South Tampa has shown interesting dynamics in the early months of 2024. In January 2024, the area boasted 710 homes for sale, a modest increase to 752 homes by February 2024. This gradual rise in inventory suggests a slight easing in the market, offering more options for buyers navigating the competitive landscape of South Tampa real estate.

Sales activity has also seen positive momentum, with 109 homes sold in January 2024, escalating to 133 homes sold in February 2024. This uptick in sales underscores the persistent demand in South Tampa, reflecting the area's desirability and the effectiveness of sellers in connecting with motivated buyers.

An important metric for buyers and sellers is the average time on the market, which has seen a notable improvement. Homes in February 2023 lingered for an average of 58 days before closing a deal. Fast forward to February 2024, and that average has reduced to 45 days, indicating a quicker turnover and a more dynamic market environment. Furthermore, an impressive 53% of homes sold in February 2024 did so in under 30 days, highlighting the market's efficiency and the buyers' readiness to act swiftly to secure their preferred properties.

Investing in Tampa's rental market

The landscape for rental investments in Tampa shows a mix of trends, with average rents fluctuating across different city sectors, presenting varied opportunities for potential investors. The average rent for a two-bedroom home across Tampa is $1,837, marking a decrease of 4% from the previous year. This slight downtrend might initially seem discouraging, but it's essential to delve deeper into location specifics to uncover potential hotspots or areas ripe for investment.

In the more affluent southeast Tampa, the average rent for a similar two-bedroom home is significantly higher, at $3,539, despite a 5% decrease from last year. This area commands premium rents, reflecting its desirability and the potential for higher rental yields, albeit with a more substantial initial investment.

Conversely, in southwest Tampa, the average rent for a two-bedroom home is $1,595, experiencing a more pronounced 24% decrease from the previous year. This drop might signal a buyer's market, offering investment opportunities at lower property prices, with the expectation of rent stabilization or increases in the future.

With 44.4% of homes in the Tampa area being rentals, the robust market supports a significant population of tenants. This high percentage of rentals indicates a strong demand for leased properties, providing a fertile ground for investors to cultivate a lucrative portfolio. Navigating the rental market with a strategic eye on location, market trends, and tenant demand will be key to maximizing investment returns in Tampa's diverse real estate landscape.

Is now the right moment to invest in Tampa real estate?

Deciding whether to dive into the Tampa real estate market requires an understanding of current economic indicators and long-term trends, especially for those looking to invest or sell properties. A crucial factor influencing this decision is mortgage rates, which are directly affected by inflation. Expectations suggest that mortgage rates will only experience a significant decrease if inflation falls to the 2% range.

Historically, home values have shown a resilient upward trajectory, a trend that speaks volumes about the strength of real estate as an investment. Despite the national home value dip experienced in 2008 and 2009, the rebound was swift, with values climbing up within a year. This resilience underscores the inherent value of real estate investments, which tend to appreciate when viewed through a long-term lens. Since 1965, national trends have consistently shown rising home values, reinforcing that real estate remains a sound investment.

A market of opportunity and growth

When buying or selling real estate in South Tampa, partnering with an experienced local agent from 360 Realty can make all the difference. As a boutique brokerage, 360 Realty boasts a team of highly experienced agents adept at navigating commercial and residential property markets. Their deep understanding of South Tampa's unique market conditions and a personalized approach to each client ensures you receive tailored advice and strategies designed to secure the best possible outcomes.

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With backgrounds in Real Estate Law as licensed Florida Attorneys, finance, marketing, and sales, our clients benefit from a true comprehensive approach to navigating basic to extremely complex real estate transactions.

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