Home Values Expected to Rise in Tampa Bay Area
By Christina Sturgis
Home values in the Tampa metropolitan area are expected to rise 2.4 percent from the current median value of $163,000 over the coming year, according to Zillow, just beating the nationwide forecast of an increase of 2.3 percent from a median value of $184,600. That’s based on data through the end of February, the most recent month for which information was available.
Florida real estate was hit extremely hard by the Great Recession, which was followed by a crisis in foreclosures and negative equity, the term for mortgage balances that exceed the current value of the home. Zillow currently puts the Tampa metro negative equity rate at 14.7 percent, higher than the nationwide percentage of 13.1 percent.
Year over year since February 2015, there has been healthy appreciation in the Tampa metropolitan area.
-13 percent in St. Petersburg
-11.7 percent in Tampa
-9.4 percent in Clearwater
-9 percent in Spring Hill
-4.7 percent in New Port Richey
The homebuyer market also affects the rental market because people who lose their homes through foreclosure or are unable to qualify for a mortgage add to the demand for rental housing, forcing prices upward.
Once residents who would otherwise buy homes are in the rental market, they often find that the burden of high rents make it difficult to save for a home purchase.
Zillow research indicates the median rent for the Tampa metro area is $1,301, up about 3.7 percent over the past year. The research shows that a household that makes the transition from renting to purchasing will find the purchase financially advantageous in 1.6 years. That point where buying is financially advantageous is shorter in Spring Hill, 1.3 years, St. Petersburg, 1.4 years, and New Port Richey, 1.5 years.
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