Advertisement
  1. Business

Home prices 'have likely peaked' in the Tampa Bay area after years of gains

This bayfront home in St. Petersburg’s Snell Isle area sold in April for just under $3 million, making it Pinellas County’s priciest sale of the month. [Courtesy of Douglas Elliman]
Published May 21

Tampa Bay home sellers take note — the steady price gains of the past few years might be coming to an end.

"Home values have likely peaked in the Tampa metro area,'' according to Zillow, the online real estate giant. "Home values have fallen in each of the past two months and are down quarter-over-quarter, indicating the start of a longer-term trend.''

The median value of a Tampa Bay home — houses as well as condos and townhomes — was $213,800 in April, down slightly from March. That reflected a national trend, with the typical U.S. home showing the first monthly decline in more than seven years.

Other areas where prices have probably peaked include all of California's major cities as well as Miami, Houston, Boston, Philadelphia, Seattle and Portland, Ore.

"These markets are … examples of a price correction after years of significant home value growth above and beyond the pace of income,'' Skylar Olsen, Zillow's director of economic research, said in a release. "We expect other metro areas to join this list before too long.''

Charles Richardson, senior regional vice president for Coldwell Banker, thinks there is still room for bay area prices to grow despite a few months of overall price decreases.

"I think (prices) are cycling, I don't think they've peaked,'' he said. "We're in a little bit of downturn from a pricing perspective but based on other evidence out there, there shouldn't be an extended type of downturn. We still have in-migration, we still have very attractive interest rates that have been going down for several months and that allows people to buy more home for the money.''

Based on figures released Tuesday by Florida Realtors, Tampa Bay's real estate market continues on an erratic course as prices of single-family homes — the biggest share of the market — rose in Pinellas, dropped in Hillsborough and Pasco and were flat in Hernando. Houses are taking longer to sell than they did a year ago April. Sellers also are getting less of their asking price than they did in April 2018.

Here's the county-by-county breakdown:

Pinellas: Prices up 6.8 percent to a median of $269,500, sales down 2 percent.

Hillsborough: Prices down 1 percent to a median of $247,390, sales up 11.2 percent.

Pasco: Prices down 2.1 percent to a median of $213,150, sales up 9.5 percent.

Hernando: Prices up less than 1 percent to a median of $190,688, sales up 8.7 percent.

The top price paid in April was $5.2 million for a five-bedroom, six-bath house overlooking the Palma Ceia golf course in South Tampa. Though built just six years ago, the 8,761-square-foot home resembles a vintage French Provincial chateau and evokes the "golden era of Hollywood glamour'' inside, the listing says.

Pasco recorded its priciest transaction in three years — a five-bedroom, seven-bath house in Dade City that sold for $1.699 million. The 8,156-square-foot home in the Lake Jovita Golf & Country Club area sits on more than three acres overlooking Clear Lake.

In Pinellas, the highest price paid was $2.998 million for a four-bedroom, three-bath bayfront house in St. Petersburg's Snell Isle neighborhood. And in Hernando, a lakefront estate in Spring Hill's Lake in the Woods gated community sold for $765,000, among the 20 highest prices paid in that county since 2009.

Statewide, single-family home sales in April climbed 6.2 percent while prices rose 2.6 percent to a median of $259,470.

Nationally, sales of all existing homes fell 4.4 percent compared to a year earlier while prices rose 3.6 percent to a median of $257,900.

The national decrease in sales — the 14th straight month of year-over-year declines — is somewhat confounding since mortgage rates have again dropped after rising late last year. But Lawrence Yun, chief economist for the National Association of Realtors, said he is not worried.

"First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions," he said. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales."

Contact Susan Taylor Martin at smartin@tampabay.com or (727) 893-8642. Follow @susanskate.

ALSO IN THIS SECTION

  1. A total of 131 employees are scheduled to be laid off in January as Locale Market and Farm Table Cucina close at the Sundial to make way for a new food hall created by the developers of the Heights Public Market at the Armature Works in Tampa. CHRIS URSO   |   TIMES
    In a notice to the state of Florida, Sundial owner Bill Edwards said the layoffs are expected to take place the first week of January.
  2. WeWork is opening Tampa offices at 501 E Kennedy Blvd. despite company struggles, including $1.25 billion in losses over 2019. SCOTT KEELER  |  Tampa Bay Times
    WeWork has 200 planned coworking space openings as leadership tries to manage $1.25 billion in losses.
  3. Florida's unemployment rate was unchanged in October at 3.2 percent, according to numbers released Friday. LYNNE SLADKY  |  AP
    The latest numbers were released Friday morning.
  4. Apollo Global Management has offered $130 per share for Tech Data's stock in an acquisition worth $5.4 billion. If regulators shareholders approve, the home-grown company will remain based in Pinellas County, where it employs 2,000 of its 14,000 workers. DIRK SHADD  |  Tampa Bay Times
    Private equity firms like Apollo create wealth for pension funds, financial institutions and individual investors by buying assets that typically are sold later at a profit.
  5. Some of Tampa Bay's largest companies are being sold or are up for sale. Times files and Bloomin' Brands
    Tech Data is just the latest in a growing list of public companies bought up by out-of-state firms.
  6. Hillsborough Community College solicited "non-binding letters of interest or intent” last month from developers interested in purchasing the Dr. Gwendolyn W. Stephenson District Administration Center on Davis Islands. OCTAVIO JONES  |  Times
    Developers have eyed the 3.7 acre waterfront parcel for years, but recent interest has prompted the college’s trustees to finally start the conversation.
  7. Tampa International Airport looking north. The Wall Street Journal ranked it the best midsize airport in America. [Times files]
    TPA took first place in the Wall Street Journal’s annual survey of U.S. airports.
  8. Tech Data's CEO Rich Hume (left) shares a moment with former CEO Bob Dutkowsky during a send off celebration for Dutkowsky earlier this year. JIM DAMASKE   |   Times
    A private equity firm has agreed to buy Tech Data.
  9. Joseph Erickson, 53, looks out the window at the gulf-[front condo he thought he won at a foreclosure auction last year.t JOHN PENDYGRAFT   |  Times
    "There have been serious allegations,'' Judge Keith Meyer said.
  10. Sam's Club fulfillment center manager Nick Barbieri explains to a shopper how the new Scan & Go shop works at 5135 S Dale Mabry Highway. SARA DINATALE  |  Tampa Bay Times
    Shoppers in Tampa Bay can now skip the line and cash out alcohol on their own phones.
Advertisement
Advertisement
Advertisement