Make us your home page
Instagram

Tampa Bay home prices hit five-year high, but Realtors question how long they'll climb

The dog days of summer have yet to slow down Tampa Bay's housing market, as home prices last month inched up to their highest point in five years.

The typical single-family home here sold for $164,000 last month, an 18 percent jump over June 2012, My Florida Regional Multiple Listing Service data show.

But as mortgage rates rise, real estate agents question just how long home prices will maintain their rapid climb.

"This is a readjustment, a stabilizing in value," St. Petersburg agent Frederic Samson said. "Prices aren't going to keep going up as we've seen them."

Median home prices here have jumped, compared to the same month a year before, for 18 months in a row, as a swelling crowd of interested buyers competes for a shrinking pool of homes.

Home sales here nudged down 5 percent to 3,200 sales in June, data show. But that's still the second-busiest month this market has seen since late 2005.

Much of that frenzy has been set off, agents said, because there are too few listings to satisfy demand. By last month, the number of Hillsborough homes for sale was half of what it had been two years before, Greater Tampa Association of Realtors data show.

That has pushed buyers to send in offers quickly or risk losing out. The typical Tampa Bay home last month went under contract in 26 days, the fastest turnaround since the boom in 2005, data show.

Condo prices climbed 7 percent since last June, to $80,500, data show.

Conventional sales — those not marred by a short sale or foreclosure — also sold faster and for higher prices, typically netting a contract within 22 days and selling for $199,000.

Cash deals, which accounted for 44 percent of all sales, slid last month for the first time in half a year, possibly because rising prices have cut into investors' returns.

And Realtors expect climbing mortgage rates could eat further into home buyer demand. The average 30-year fixed-rate loan, after dipping to 3.3 percent in May, has since crept up to 4.3 percent, a change that could add hundreds of dollars onto homeowners' monthly bills.

Andrew Duncan, the owner of Re/Max Dynamic in Tampa, said he expects this year's fiery price gains will settle down as sellers return to the market and buyer demand cools.

Though price gains typically lure more sellers into the market, Duncan said recent months' gains have had a surprising effect.

"It's actually causing some sellers to fence-sit, expecting prices to go up even more," Duncan said. "They get overly ambitious, thinking prices will go up forever. … They think we're back in 2005. And we're not. We don't have the economic fundamentals. We've still got high unemployment, low wages and a lot of foreclosures to get through."

Contact Drew Harwell at (727) 893-8252 or dharwell@tampabay.com.

Tampa Bay home prices hit five-year high, but Realtors question how long they'll climb 07/10/13 [Last modified: Wednesday, July 10, 2013 8:45pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Despite Hurricane Irma, Hillsborough remains on pace to unlock hotel tax that could pay for Rays ballpark

    Tourism

    TAMPA — Despite the threat of a catastrophic storm, it was business as usual at many Hillsborough County hotels in the days before Hurricane Irma bore down on the Tampa Bay region.

    The Grand Hyatt near TIA closed during Hurricane Irma, but many other Hillsborough hotels were open and saw an influx.
  2. New Graham-Cassidy health care plan stumbles under opposition from governors

    Nation

    WASHINGTON — The suddenly resurgent Republican effort to undo the Affordable Care Act was dealt a blow on Tuesday when a bipartisan group of governors came out against a proposal gaining steam in the Senate.

    Sen. Lindsey Graham, R-S.C., joined by, from left, Sen. Roy Blunt, R-Mo., Majority Whip John Cornyn, R-Texas, Sen. John Barrasso, R-Wyo., Sen. Bill Cassidy, R-La., Senate Majority Leader Mitch McConnell, R-Ky., and Sen. John Thune, R-S.D., speaks to reporters as he pushes a last-ditch effort to uproot former President Barack Obama's health care law, at the Capitol in Washington, Tuesday, Sept. 19, 2017. To win, 50 of the 52 GOP senators must back it -- a margin they failed to reach when the chamber rejected the effort in July. [/J. Scott Applewhite | Associated Press]
  3. Early estimates peg Hurricane Irma damage at as much as $65B

    Banking

    The damage totals from Hurricane Irma are still being tallied, but early numbers are in: As of Tuesday, the storm is estimated to have caused between $42.5 billion and $65 billion of damage. That's according to a Tuesday release by Irvine, Calif.-based analytics company CoreLogic.

    Hurricane Irma is estimated to have caused up to $65 billion in damage, said analytics company CoreLogic. Pictured is 
Hermilo Munoz Castillo as wades down a flooded street to check on his home in southern Collier County, Fla. after Hurricane Irma passed. | [LOREN ELLIOTT | Times]
  4. Port Tampa Bay makes public/private commitment for $60 million expansion project

    Business

    TAMPA — Port Tampa Bay approved a public-private partnership agreement with four other entities to divvy up who will pay for a $60 million widening and extension of the Big Bend Channel.

    Port Tampa Bay approved a participation agreement with the U.S. Army Corps of Engineers, Florida Department of Transportation, Tampa Electric Company and Mosaic Company at the port's monthly board meeting on  Tuesday. Port Tampa Bay President & CEO Paul Anderson signs the agreement as Ram Kancharla; Port Tampa Bay's vice president of planning & development, Brandon Burch; project manager at United States Army Corps of Engineers, Lois Moore; of Alcalde and Fay and Charles Klug; Port Tampa Bay principal counsel, and Tim Murphy; deputy district engineer of the Army Corps., looks on. [Company handout]
  5. One of St. Petersburg's newest condo projects is sold out

    Real Estate

    ST. PETERSBURG — Reflecting the continued demand for condos in downtown St. Petersburg, The Salvador, completed earlier this year at 199 Dali Blvd., has sold out. Records show that a 2-bedroom, 2-bath unit sold Friday for $620,000 in an all-cash deal. Two other units — a 3-bedroom, 2-bath penthouse and a …

     Reflecting the continued demand for condos in downtown St. Petersburg, The Salvador, completed earlier this year at 199 Dali Blvd., has sold out. 
[Rendering courtesy of aalliiggnn LLC]