Increased Demand and Minimal Inventory Create The “Perfect Storm” for Tampa Homeowners

The COVID-19 pandemic has left many homeowners and homebuyers in a state of stagnancy and confusion. In times of uncertainty, making significant financial decisions can be a stressor for some, leaving those looking to sell their home and begin the next chapter in their life with cold feet.

Fortunately; the unique set of circumstances the pandemic has created has in fact set the stage for homeowners to sell their home at a potentially higher value and perhaps a shorter timeline, as well.

Here’s why:

Inventory/supply is low: According to data from Greater Tampa REALTORS®, the Greater Tampa Bay area is currently operating with an inventory of less than 2 months. According to these same statistics, an available inventory of at least 5 months is necessary to create a “balanced market”, one where neither sellers nor buyers have the advantage. From these statistics, it is clear that Tampa is currently operating in a seller’s market, meaning homeowners looking to sell their home have the comparative advantage. Prospective homebuyers are still looking to take their next step, and minimal inventory has the potential to drive more of these potential buyers to your property.

Demand is high: Traditionally, the summer is a high-volume period for real estate transactions. Since much of the world was put on hold at the onset of the COVID-19 pandemic, markets across the country struggled to adapt to safer practices, a declining inventory, and state-imposed regulations. Even though the market was temporarily on hold, demand never subsided. This means that now that operations are slowly returning to normal, there is an excess of demand among potential homebuyers. This increased demand coupled with low inventory can make your property appear more desirable, and drive up the likelihood of bidding wars and higher offers for your home.

Interest rates are at a significant low: According to Freddie Mac, markets are currently experiencing their lowest interest rates since October of 2016. The standard 30-year mortgage rate is currently coming in at about 3.4%, almost a full point lower than a year prior. This makes the prospect of mortgaging a home more attractive to potential buyers, again increasing demand.

The Tampa market is performing well: According to a report by NeighborhoodScout.com, Tampa is in the top 10% of cities nationwide for home value appreciation. This means that property values are steadily rising, and as any local can tell you this is largely in part to the increasing metropolitanization of Tampa Bay- in other words, we are urbanizing fast. The nature of the Tampa market only further contributes to the advantages of selling your home at this time.

When considered together, these factors should certainly seem attractive to a homeowner looking to make their next step. We could be living in one of the most opportune times to sell your home in the Greater Tampa area, and even potential homebuyers can take advantage of low interest rates. It makes sense then that ATTOM Data Solutions (a property data company) reports Tampa as being one of the housing markets to be affected the least by the COVID-19 pandemic.

If you are looking to make the next step in selling or buying your home, visit us at www.54realty.com and choose the “Buy” or “Sell” tabs based on your real estate needs.

Furthermore, if you are looking to get a property valuation on your home, fill out our short form at https://54realty.com/home-values-landing and we will reach out to you!