Between 2019 and 2021, the Houston housing market smashed record after record, topping 106,000 home sales during 2021.

Low-interest rates resulted in a well-documented home-buying frenzy during 2020. In turn, this caused a 10% increase in sales over 2019’s previous all-time high.

This trend continued throughout 2021, making Houston one of the hottest property markets in the country. Other factors behind the hot Houston property market include low real estate taxes, a strong job market, and a young population.

The frenzy only started to subside halfway through 2022, thanks to dwindling supply, interest rate hikes, and limited construction projects. Even so, sales fell just short of 2021’s record-breaking figures, although prices eventually started to cool.

These incessant increases naturally led to fears of a pending housing crash. Yet, this never happened.

Considering these uncertainties, what will 2023 hold for prospective Texas homebuyers and sellers?

Thanks to these extraordinary circumstances, the last few years provide no clues about what to expect from the Houston real estate market as the new year gets underway.

Let’s look at some expert predictions surrounding what might happen to Houston housing prices this year.

1. Houston’s Real Estate Market Will Relax in 2023

Shafaq Patel and Sami Sparber spoke to local experts about what to expect from the Houston-area housing market this year.

Overall, these real estate professionals expect the market to approach normalcy during 2023.

Jennifer Wauhob, 2022 chairperson of the Houston Association of Realtors, points out that a steady, but gradual, decline in Texas home prices has allayed fears of a housing market crash.

This means buyers and sellers are resuming their real estate activities at a rate that’s more in line with pre-pandemic trends.

However, she warns that those who missed the chance to take advantage of low-interest mortgages might find current home prices challenging. On average, single-family homes are still selling for around $400,000.

Other predictions include:

More Leverage for Buyers

According to Nicole Lopez-Cummins of Mark Dimas Properties, increased inventory will create a more relaxed buyers’ market. This means a move away from pressured decisions and the urge to buy a home as soon as possible.

That means buyers can consider their options for longer and in more depth than before.

During the last few years of minimal interest rates, many buyers were offering well above the asking price for homes. Cathy Treviño, Chair of the HAR for 2023, remarks that buyers are now making offers more in line with the asking price.

A Return to Seasonal Cycles

Paul Silverman of Martha Turner Sotheby International Realty, predicts the forecasted dip in interest rates will give hesitant buyers extra purchasing power.

In turn, this increased pool of buyers helps support the ebb and flow of people upsizing and downsizing their homes as needed, instead of holding on to them for lack of alternatives.

HAR’s Treviño adds that spring and summer should bring the usual uptick in sales as people start to recover from holiday spending.

She also points out that those who’ve been renting to ride out the hot property market in Houston may resume their searches for a home as prices continue to slide.

The Suburbs Are Still Booming

As prospective buyers continue their search for more space, Houston continues to expand outward. For instance, Treviño points out that there’s high demand for homes in suburbs like:

• Crosby
• Atascocita
• Kingwood
• Woodlands
• Katy

In 2021, The Woodlands managed to achieve the number one spot in Niche.com’s ‘Best Places to Live’ rankings. That’s thanks to its family friendliness, low crime, and excellent amenities.

For those lucky enough to continue working from home, these pristine suburbs remain a top choice.

2. The Houston Housing Market Is off to a Stable Start This Year

Karen Alvarez of ABC reports that a recent study highlights Houston as the eighth most stable housing market in the US as 2023 gets underway. These researchers used inventory, inflation, and interest rates as factors to better gauge what to expect from the housing market in 2023.

According to Cathy Treviño of the Houston Association of Realtors, the holiday season is typically the slowest time for real estate transactions. This usually changes as the summer rolls around and Houstonians consider buying or selling their homes for a fresh start to the new year.

Treviño reiterates that the sellers’ market is making it hard to predict exactly how things will look in 2023, but so far things have remained stable.

Homes are staying on the market a little longer, but this is leveling off the market to provide more opportunities for buyers. It is likely buyers will have more leverage, suburbs will boom, and the seasonal cycles will return to normal.

She highlights the trend toward investors and home buyers choosing Houston for offering value for money when compared to other housing markets around the country. Experts agree that there’s currently enough supply to meet the demands of these buyers, despite interest rate fluctuations.

At present, the average price for a single-family home in Houston is around $400,000, just above the national average of $366,900.

Overall, this article emphasizes that it’s too early to tell what may happen in the realm of Texas real estate. Currently, it’s best to consult a real estate professional for assistance with navigating the complexities of the Houston real estate market.

3. Houston Home Sales Take Another Hit

In another article, Jack Williams, the executive producer for daily news at Houston Public Media, looks at the reasons behind declining home sales in the metro.

In November 2022, Houston home sales dropped 30% when compared to the previous month. This was the biggest decline of 2022, driven by factors like high mortgage rates and limited inventory.

A corresponding report from the Houston Association of Realtors indicates a 45% decrease in sales of homes valued at $150,000 and $250,000. Homes priced above $250,000 experienced a 27% reduction in sales during November.

Townhome and condo sales also dropped 35% in November 2022.

Nationwide, mortgage rates are currently double what they were in 2021, while home prices remain stable. This has created caution on the part of buyers, who’d rather wait for cheaper prices.

As a result, there’s a high demand for rentals at present.

These are all signs that the Houston housing market is normalizing when compared to the unusual conditions of the last two years.

Jennifer Wauhob of the Houston Association of Realtors, emphasizes that a 30% drop in sales isn’t so scary when one considers the abnormal excesses of 2021 transactions.

Year-on-year, Houston home sales are down almost 9% in 2022. This places November’s numbers just off the sales figures recorded in 2018 before the onset of the pandemic.

Other good news is that Houston’s housing inventory has improved. Now there is almost 3 months’ worth of housing available for sale.

A shortage of inventory in the past few years was a major driver behind soaring prices and bidding wars on available homes.

Expert realtors view six months of inventory as conducive to a balanced market. So, this increase is a step in the right direction for Houston real estate.

Sales might have dropped, but home prices are still on the rise throughout the Houston metro. In November, prices were still around 6% higher when compared to the previous year.

January 2023 saw similar increases, with housing prices escalating by around 6%. Homes are staying on the market longer, too, causing sellers to lower their prices or remove their homes from the market.

The average single-family home lingers for around 45 days before it sells, ten days longer than in November 2021.

Despite the slowdown in the market, Houston is standing up well to the slump when compared to similar cities. Other large metros have seen dramatic price decreases in the last eight months.

Houston Housing Market Key Takeaways

Overall, the Houston housing market has a favorable outlook. It’s still one of the more affordable cities to live in since real estate prices never reached the extremes seen in Austin and other Texas cities.

Houston escaped a huge influx of buyers from high-priced areas between 2020 and 2022, which helped keep home prices lower.

There’s still much uncertainty surrounding the future of real estate in Houston, although some constants remain. These are:

• Seasonal fluctuations
• High buyer interest in the suburbs
• Steadily decreasing prices
• Increasing inventory
• Significant value

Overall, these factors point to a steadily normalizing situation, which bodes well for stability in the real estate market. Realtors agree that increasing inventory levels coupled with steady buyer demand are signs of a healthy market undergoing a slight adjustment.

Home sellers might not enjoy the massive profits and fast sales we’ve seen in recent times, but they’ll still achieve a satisfactory outcome when placing their homes on the market.

The post The Houston Housing Market in 2023: Here’s What 4 Reports Say appeared first on iBuyer Blog.

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About 64% of US Citizens own real estate.

Are you looking to buy a home in the Atlanta area? With so much uncertainty in the Atlanta housing market, it can be hard to know what the future holds.

You want to make sure that your investment is sound and that you’re getting into a good market with growth potential. But how do you know which markets are going to perform well over the next few years?

We have done all of the research for you! In this article, we will take a look at 4 reports on what experts predict for Atlanta’s housing market in 2023. Keep reading to learn more about why now may be an ideal time to invest in real estate in Atlanta.

1. Atlanta’s Housing Market Will Lead U.S. In 2023

Atlanta is an increasingly attractive real estate market that is projected to become one of the top U.S. markets in 2023 according to a report from Liz Lucking at Mansion Global. This metropolitan city has seen a steady increase in prices, along with a massive growth in population due to its pro-business policies, improving economy, and overall quality of life making it an ideal destination for investors and homebuyers alike.

For instance, the housing market has seen average home prices rise since 2018 and is expected to keep growing well into 2023. Additionally, homes are seeing shorter listing times as buyers are eager to snatch up these properties while they can.

Furthermore, rental demand continues to remain high which helps contribute to the stability of rental rates in the area – another strong point that draws investors looking into their options in this thriving sector.

The job industry also plays a huge role in the ever-evolving real estate market of Atlanta. With new businesses flocking to this city, there is positive job growth which serves as an incentive for more people to move here for better career opportunities thus increasing demand for housing.

Overall, Atlanta’s robust housing market should continue its upward trajectory throughout the next couple of years and should be one of the top markets within the United States by 2023 according to data from Mansion Global.

Homebuyers and investors alike should take advantage of this booming market now before prices continue rising even higher!

It also appears that the market is on track to become increasingly diverse. For instance, there has been a recent influx of younger generations moving into the city due to its affordability and quality of life which only further diversifies the area and brings in new investments.

Furthermore, interest rates remain low which is another driving factor for those who are looking to invest in real estate while they can still secure such great deals. The cost of living has also remained relatively steady, making it an ideal spot for people who are yet to join the workforce or those who are looking to start families as it’s affordable enough without sacrificing the quality of life.

Atlanta is thriving and by 2023 it should have established itself as one of the top U.S markets – offering lucrative investment opportunities as well as excellent places to live and work in this beautiful city.

2. High-Interest Rates, Low Inventory

According to a recent report from Kathy Dean at Rough Draft Atlanta, the housing market in Atlanta is expected to fare well over the next year. Despite some potential roadblocks such as high-interest rates and low inventory, this booming real estate market should remain steady throughout 2023.

For starters, while interest rates are forecasted to stay at an all-time high, they will remain lower than what they were pre-pandemic and should not impede people’s access to mortgages or other forms of financing.

Additionally, although the current inventory levels are low due to fewer homeowners putting their properties on the market, this situation should improve by summer 2021 when more homes become available for purchase which should help keep home values consistent with historic norms.

The job industry also continues to prosper – especially in tech and digital media – which has encouraged new businesses to flock into this metropolitan city thus creating more employment opportunities for those who have moved here recently or plan on doing so shortly.

This is paramount as it helps bring in more buyers who are eager to stake their claim on these attractive properties before prices start climbing even further.

Overall, Atlanta’s housing market appears to be on track for success despite some possible roadblocks that may arise along the way. Those looking into investing and/or buying property should make sure they act fast once homes become available as they’ll still benefit from relatively lower interest rates while ensuring they get a good deal on one of these attractive properties!

To help ensure success in this hot real estate market, potential buyers should make sure to do their research when choosing the perfect home. This includes considering such factors as location, size, amenities, and budget to ensure they find the right property for them.

The current economic climate is good for people who want to buy a house. They can get a loan more easily and at a lower rate than before the pandemic.

If you are thinking about buying a house, look for any special offers from the government that can help make it more affordable.

Overall, Atlanta’s housing market is doing well. This is because new businesses are coming in and people want to buy houses before prices go up.

If you want to buy a property, now is a good time. There are still some good deals available, and the interest rates are relatively low. So if you see a property you like, don’t wait too long to buy it!

3. Housing Industry Headed for a Tough 2023

According to a report from John Adams and Fox 5 Atlanta, the housing industry is expected to face some difficult times in 2023. This is due to high-interest rates, low inventory levels, and the inability of many potential buyers to qualify for mortgages.

High-interest rates have been an issue throughout 2020 and 2021 and they are expected to remain relatively high until at least the end of 2023. This may cause problems for those who are looking to buy property since they will be paying higher mortgage rates than usual.

This means that there are not a lot of homes available for people to buy. This can make people frustrated because they have fewer options. Some people who want to buy a home may not be able to because of new rules or because of the virus.

This could make it harder for sellers to find buyers for their homes. Fewer people would be able to buy homes, which would make it take longer to sell a home.

It is important to remember that you have not lost everything if you want to buy a house in 2023. You just need to be patient and willing to work hard to find the right one.

For example, if you want to buy a property, look for one that is not in the city center. They tend to be cheaper, but they still have advantages like being near parks or important buildings from history.

Some lenders offer special programs that can help people with lower incomes get zero-down home loans or other types of financing. There may be some challenges for people who want to buy a house in 2023, but there are also ways to make it easier.

You can find a better house if you look in different places and talk to different people. This might take more time than you thought at first, but it will be worth it in the end.

4. Real Estate Market Is Slowing, but Prices Are Still Sky-High

Another report from Mary Logan Bikoff and Atlanta Magazine claims the Atlanta real estate market is slowing down but prices are still sky-high. This can be both a cause for concern and optimism depending on whether you’re looking to buy or sell property in the area.

For buyers, it means that now might be the time to take advantage of purchasing costs that could be lower than usual. This is because fewer homes are being put on the market than there usually are.

But this also means that people who want to buy a new property will have to work harder during their search. This is because competition for new properties remains fierce and interest rates remain on the higher side.

Plus, some government programs give loans to people. But right now, those programs are not accepting new people. So, if someone does not qualify for other things, it might be hard for them to get the loan they need.

Some people might have trouble getting money from the government to buy a home. This could make it hard for them to buy your home.

If you are selling your property, make sure to act fast. Once you list your home, it will probably be sold quickly because there are a lot of people who want to buy before housing prices Atlanta go up again.

Some of the things happening in the real estate market might seem scary, but there are lots of things that people can do to help themselves. If people look carefully and keep their minds open, they will find lots of good choices.

With any luck, the 2023 housing market Atlanta will be a period full of success stories rather than regrets!

Key Takeaways on the Atlanta Housing Market

There are some good chances to buy or sell a house in Atlanta, but there are also some things people should think about first. One of these is the economy and how interest rates are lower than they were before the coronavirus.

Buyers must be careful not to spend too much money on a house. They should only buy a house that they can afford. It is important to do the math and find a loan program that fits within their budget and long-term financial goals.

It is a good idea to look at lots of homes and talk to more than one agent or broker. This way you can get the best deal possible. Right now, there are not a lot of homes for sale. This means that people who want to buy homes will have to compete against each other. If there are too many people competing for the same home, the price could go up.

When you are trying to decide if now is a good time to buy a house in Atlanta, it is important to look at things that will last for a long time. Some examples are employment opportunities, population growth, and the economy. These will help you make smart decisions.

In conclusion, 2023 promises to be an exciting year for those looking into the Atlanta real estate market! With research and patience, buyers can take advantage of potentially lower purchasing costs while sellers can still benefit from high sale prices for their properties.

By taking time to understand both the potential benefits and risks involved in this market, everyone can come out on top!

Get the Best Offer for Your Property From iBuyer.com

Now that you can see the future of the Atlanta housing market, you can start to take action. When it comes time to sell your home, you will be glad you did it with iBuyer.com

The entire selling process can be incredibly long-winded and time-consuming. You can make things much quicker and easier, however, buy using iBuyer. Simply enter your address and we’ll quickly be able to give you a cash offer, saving you a huge amount of time.

Click here to get a valuation for your home today.

The post The Atlanta Housing Market in 2023: Here’s What 4 Reports Say appeared first on iBuyer Blog.

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Selling a home can be both an exciting and nerve-wracking endeavor. With this in mind, it’s understandable why homeowners often wonder how long it takes to sell a house. In the US, most homes sit on the market for an average of 25 days.

However, much more goes into preparing to sell a house, selling a home, and closing on the house. Most homeowners spend at least six to nine months selling their houses via traditional methods.

If that sounds like a lot, then know that you have other options (such as a cash offer), which we’ll explore in this comprehensive guide. We have all the answers you need about what to expect along the way so that you feel informed throughout the home-selling process.

Selling a house: The process in 5 steps

As a homeowner, it is essential to be familiar with the house-selling process to make sure your house is sold at the right price and in the best timeframe possible. Without becoming aware of the house-selling process, you may find that selling your home can take longer than necessary or that you don’t receive a reasonable price based on its condition.

If this is your first time selling a house, here are the five main steps of the process.

1. List the property

Listing puts your home on the market, making it available to potential buyers. It allows you to start getting offers and gives you control over the sale of your house. Many listing options are available for you to choose from, so no matter what type of property or budget you have, the listing is an excellent starting point in looking for buyers interested in buying your house.

After all, putting your listing out there opens up access to many different marketing channels and audiences, maximizing the exposure of your listing and giving it a greater chance of being noticed.

2. Negotiating and accepting an offer

After you’ve done the hard work of preparing your home for sale, negotiating and accepting an offer on the house is the second step in the selling process. This critical stage comes with its challenges, some of which include the following:

• Negotiating a fair final price
• hammering out details like closing costs and repairs
• Ensuring all parties are satisfied with the agreement

This might sound complicated, and that’s because it can be. That’s why ensuring you feel confident in negotiating terms that will leave you satisfied with the transaction is crucial. Negotiating and accepting the right offer can help ensure your home-selling journey ends on a good (and profitable) note.

3. Appraisals and inspections

Assuming you’ve agreed on a great offer, it’s not time for appraisals and inspections. Qualified appraisers use their knowledge of the local housing market to compare similar homes sold recently and assess how much your home is worth.

Meanwhile, qualified home inspectors will look at what’s visible in-depth and verify that features like electric wiring, plumbing, and other systems within the house are all up to code.

Do you think this is necessary? It’s a critical part of the process, yes. Having home appraisals and inspections done on a home helps ensure buyers and sellers are knowledgeable about all aspects of the property before finalizing any paperwork related to the sale. Speaking of finalizing paperwork, that brings us to our next point. Now, it’s time for the…

4. Final negotiations

During final negotiations for the sale of a house, the buyer and seller typically discuss any last changes that need to be made to the contract. Typically, this happens if something occurs during the appraisal process or a home inspection.

These negotiations will also determine whether or not the buyer can finalize the purchase with a loan or other financing option. The final agreement must be mutually beneficial, allowing both parties to leave satisfied with their roles in the transaction. This process is necessary to close the sale and finalize all documents involved in transferring ownership.

5. Closing

Now, it’s time for closing day. This might look a little different from one transaction to the next. Typically, though, an escrow officer or closing attorney will oversee the process of signing closing paperwork such as:

• Loan documents
• Titles
• Deeds

Once the closing process is complete, the buyer will take ownership of the property and make their first mortgage payment, usually within 30 days after closing. Additionally, at closing, closing costs are paid by both parties; typically, buyers pay closing costs to lenders, while sellers usually pay closing costs to title companies.

How long does it take to sell a house?

So, how long does it take for houses to sell? That ultimately depends on the factors mentioned above. As you can see, many factors are involved in preparing a home for sale, selling a house with a mortgage, and negotiating the correct terms.

Typically, you can estimate that selling your home, from start to finish, will take anywhere between two to six months in an average market. This timeframe can be longer in a market where buyers have many options. Active buyers in the market will result in a faster sale, while a slower market might mean the sale takes longer.

Other factors that affect how long it takes to sell a house include property type and location and how competitively priced the property is. Regardless of how long you’re hoping to wait for your home to sell, being aware of these considerations will be beneficial in receiving an offer for your property.

Sell your house faster

You might be thinking, “Six months is too long. I need to sell my house urgently.” If that’s the case, there is a better option than putting your home on the market.

For example, a cash offer presents an attractive solution for those who need to sell their property quickly. A cash offer guarantees you cash upfront and eliminates uncertainties involved in long-term mortgage payments. This expedites the process significantly, allowing you to cover closing costs without delays and even access the cash faster if needed.

Therefore, having a cash offer is one of the most convenient ways to sell your home swiftly and hassle-free.

Why is your house taking so long to sell? 7 Factors to consider

Are you set on selling your home the traditional way? If so, you might be frustrated and thinking, “Why is my house taking so long to sell?” Don’t panic just yet. Several factors could lead to your house sitting on the market for months. Read through these seven factors to see if one of them is the culprit behind a long home-selling process.

1. Buyer’s or seller’s market

First, you’ll want to assess whether you’re trying to sell a house in a buyer’s or seller’s market.

In buyer’s markets, there are more homes than buyers, so it could sit open until the right buyer comes along at the right price. In seller’s markets, it usually doesn’t take long to find a buyer willing to pay the listing price. Knowing if it’s a buyer’s or seller’s market can help determine how fast your home might sell.

2. Number of days on market

The number of days your home has been on the market indicates why it might have yet to sell. If you’ve had your house available for buyers to view for more than a few weeks, there could be certain factors causing it not to sell. One possible explanation is that buyers aren’t seeing something they need or can’t afford what you’re asking.

Another potential issue could be that the right buyer hasn’t come along yet, and it’s simply a matter of luck. No matter the reason, understanding how long your house has been on the market can help you better understand why it hasn’t sold yet and develop an effective plan for getting it sold quickly.

3. Pricing

Pricing a home to sell quickly can be a tricky process. The price should match the market price and factor in any renovations or updates made to the house. You likely want your price to be competitive with other similar homes.

Researching recent sales for comparables and setting a price that will draw potential buyers are essential steps to price a home and sell it quickly. Additionally, getting professional advice from trusted advisors such as local real estate agents and appraisers can guide where to price your house to maximize return and minimize time on the market.

4. Property condition

If you’re questioning why your house is taking so long to sell, the property’s condition could be your answer. Potential buyers have many options out there, and they’re likely to choose a property that is already in good condition and requires minimal repairs and renovations.

Even small details like cleanliness and furniture arrangements can go a long way in making it easier to decide. If you feel that the condition of your property might be holding it back from selling quickly, invest some time into cleaning up, decluttering, and polishing up various aspects of the property. This could be just the push it needs to get off the market fast.

5. Home location

As you might know, property location is a huge factor that could determine how long your property will take to sell. Various factors can influence the demand for your property. These include:

• Proximity to public transport
• Nearby amenities
• Employment opportunities
• Cost of living

If the property is more desirable in terms of its location, chances are there will be higher interest from homebuyers, which could result in the property selling faster. On the other hand, if the property has less favorable location features, it could take longer to find an interested homebuyer.

6. When you sell your home

Likewise, you’ll want to understand the best time to sell a house in your location. For example, in warmer climates such as Atlanta and Las Vegas, the best time to sell a home is in May. In colder climates such as Chicago or Boston, the best time to sell is in March.

While it’s not all about the weather, consider seasonality when selling your home. Generally, this depends on the market conditions and individual circumstances. If you’re looking to make the most profit from the sale, spring and early summer is usually best due to increasing demand from home buyers.

On the other hand, it is best to sell in the fall or winter months when markets tend to be slower as there may be less competition amongst sellers then. Whatever season or time of year you choose, preparation is vital as it will help ensure you receive the best offer on their property.

7. Your realtor or real estate agency

Finally, working with a real estate agency or realtor can hugely affect how long your property stays on the market. A realtor can help you price your home properly, attracting more potential buyers.

They can also provide expert advice on making the most of your listing and enhancing its appeal. They know what works in today’s market and what doesn’t. All in all, this helps put you in the best possible position to sell your house quickly.

If your house isn’t selling as quickly as you’d like, it might be time to consult a realtor, who can give you information about why it hasn’t been sold and suggest a different approach. However, as mentioned above, that’s not your only option. If you want (or need) to sell your house as quickly as possible, we suggest getting a cash offer.

Sell your home quickly with iBuyer.com

So, how long does it take to sell a house? Selling a home can be lengthy and difficult, often months or even years. If you’re worried about the length of time it takes to get your house sold and want an easier solution, then working with an iBuyer is a great option.

An iBuyer is an investor who can quickly get your home off the market in as little as days with a fair market value assessment. If you decide to pursue this route of selling, you’ll get a cash offer based on the values provided by the assessment. Ready to get started?

Click here to get your free home value estimate.

The post How Long Does it Take to Sell a House? [In-Depth Explanation] appeared first on iBuyer Blog.

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You want to sell your home in the Tampa Bay area, but you’re concerned 2023 might not be the best time to do it.

The Tampa housing market has been hot for the last few years, especially due to the COVID-19 pandemic. But now, with the uncertainty of a global recession looming, interest rates are on the rise.

The Tampa real estate market still ranks among the hottest in the country. In 2022, Florida was the fastest-growing state in America. There are plenty of reasons to consider listing your home this year.

If you are considering listing your home, you want realistic expectations on its value, as well as a timeline of how soon it will sell. You also want to know what to expect from buyers. We want to make sure you feel confident in your decision to sell and that the experience goes smoothly.

This guide will look at Tampa Bay housing market trends for 2023. We’ll discuss how rising interest rates impact the market, affordable housing challenges, sales outlooks, and the renters market. You will better understand where the market is and what to expect if you decide to list your home.

Will rising interest rates impact the Tampa housing market?

Let’s begin with the elephant in the room. If you’re concerned about rising interest rates impacting the sale of your home, that concern is valid. The Tampa Bay real estate market has benefited from low-interest rates in recent years, which drove sales to record highs.

At the end of 2022, the Federal Reserve raised interest rates to 4.5 percent. That is the highest level since 2007. Further increases are expected.

The measures aim to discourage home buyers and cause the housing market to cool off to avoid further inflation. Despite these measures, experts say the Tampa Bay Housing Market is not expected to dip until late in the year.

In other words, it is still a seller’s market, at least for the time being. And while it may seem like doom and gloom, experts don’t expect the Tampa housing market to crash. Here are some reasons the market is stable enough for you to sell.

Owners are more secure

A recent article in the Tampa Bay Times by Rebecca Liebson discussed the market’s stability.

The Florida area saw a housing crash in 2008. But that result isn’t expected, despite the higher interest rates. While Tampa Bay mortgage rates are still twice what they were at the end of 2021, homeowners are less likely to default than they were during the last recession.

In recent years, homeowners in the Tampa housing market have benefited from low-interest rates. Many homeowners have also chosen to play it safe during these uncertain times. So while the market will cool down, it is unlikely to crash.

Hot Tampa Bay real estate trends

In 2022, Tampa Bay ranked in the country’s top 5 places to live. The area is experiencing more people relocating to the area than it has in decades. As a result, the Tampa Bay housing market continues to experience high demand.

The area remains one of the more affordable places to live. There is also a booming job market, and the average salary ranks higher than the national average.

There are a lot of reasons to buy Tampa Bay properties. It doesn’t matter how expensive your home seems, someone is bound to buy it to find a home in the area.

Advantages of the seller

Although the market is cooling down, there is still a lot of demand. Buyers are gaining more control than they had throughout the pandemic when the market was booming, but there is still a lot of benefit to being a seller.

By December 2022, fixed mortgage rates were still double what they were in 2021. The increased rates discourage first-time home buyers from buying right now. Anyone making under $85,000 may struggle to enter the market right now.

But rising interest rates are not discouraging those relocating to the area. Despite climbing rates, sellers have yet to adjust their prices. And while 2023 may see home prices plateau, they are less likely to dip for the time being.

The challenges of affordable housing

An article published by WJCT News by Gabriella Paul talked about the challenges of affordable housing in Tampa.

High demand for housing in the Tampa Bay area is also impacting affordable housing. Tampa Bay housing trends have indicated an increased need for affordable housing with a decreased supply. The lack of affordable housing and increases in rent are resulting in increased housing instability.

In 2020, it was widely reported that 2.1 million Floridians were spending more than 30 percent of their income on housing. With the addition of inflation and the rising cost of living, many in Tampa are searching for affordable housing options.

Fewer vacancies

The increased demand has resulted in fewer vacancies. The problem is likely to get worse in the coming years.

Many affordable housing rental units are at risk of disappearing from the market completely over the next 20 years. It’s expected to happen as building agreements for subsidized units expire.

Systemic barriers

Racial injustices play a role in housing inequity as well. More than half of Black families in Florida rent, while most white families own their homes.

In recent years, lower interest rates made it easier for first-time buyers and those facing systemic barriers to purchase a home. But as interest rates continue to rise, it is becoming increasingly difficult once again.

Climate change

The changing climate is another concern of those advocating for more affordable housing options.

Many say that more action needs to be taken to keep affordable housing in the Tampa Bay area safe from natural disasters as the risk of climate change increases.

Support has been provided to owners and managers of affordable housing buildings to better prepare for the possibility of hurricanes and heat. The hope is that these changes will help prevent residents from being displaced in the case of an emergency.

Taking action

Lawmakers in Florida are trying to confront these challenges by implementing changes to the market.

The Tampa Real estate market’s expected to see the addition of 10,000 affordable homes by 2027, and more than half of that goal has been met. The hope is that the additional homes will lead to more vacancies to help close the housing gap.

The hope is that the additional inventory of homes will help level out the Tampa Bay housing market. But critics say the number will not be enough to meet the demands. The Tampa Bay area is on the verge of a housing crisis.

All of this is to say that if you’re considering selling your home, this is the time. The market is unlikely to stay as strong as it has been in recent years.

Tampa Bay housing market sales begin to dip

Even though the Tampa housing market remains strong, there was a dip in sales recorded in 2022. It is a side that the tide is changing. But, it is important to note that the drop’s size depended on the cost of the home in question.

Luxury homes were among the hardest hit. Sales of elegant homes dipped as far as 44 percent. While that may make sellers weary, it may not be as bad as it sounds.

Luxury homes inflated

Tampa Bay real estate trends saw luxury homes jump during the pandemic. Affluent buyers were relocating to the Tampa housing market to take advantage of the warm weather, beautiful beaches, and affordable living.

The increased popularity of Tampa Bay luxury homes drove the market higher than expected. As a result, those sales have a long way to fall. So seeing a sharp decline in sales as the market cools off is not surprising.

The stock market

Luxury home sales are also declining because of uncertainty in the stock market. Talk of a global recession has caused everyone to be a bit more cautious. Wealthy buyers often have much of their money tied up in unpredictable stocks.

As a result, buyers are less likely to make large investments or take risks at this time, which is why luxury homes are among the hardest sales hit.

Other Tampa Bay housing trends

In an article published by News Channel 8, author Sam Sachs discussed sales dipping in late 2022. While luxury homes dipped as far as 44 percent, the sales of other homes hovered around a 32 percent dip.

While this is a sign that the market will likely plateau, the cost of homes is not expected to drop anytime soon. What Tampa Bay real estate brokers and agents are witnessing now, is a slowdown.

Sales are not likely to close overnight. Instead, homes are staying on the market for a more realistic amount of time.

The change is providing buyers with a bit more power than they have had in recent years. There is more inventory on the market, which is giving buyers more choices. Sellers might expect more negotiation from buyers.

But it is still a fantastic time to sell your home.

Will rent and housing prices slow down?

Miguel Octavio shared housing projections in a recent article published by WTSP.

How dramatic will the slowdown in the Tampa housing market be? The future remains uncertain. But it’s expected to continue to slow down through 2023.

According to RE/MAX, the Tampa Bay real estate market was the most dramatic slowdown of any market from 2021 to 2022. Homes sales are expected to plateau in 2023 and possibly begin to dip, but values are still likely to be higher than before the pandemic.

The slowdown is not likely to impact renters. As the cost of home ownership continues to remain high and interest rates are rising, more people are looking to rent in the Tampa Bay area.

High rent costs

The slowdown may cause high costs of rent to plateau in 2023, but they are not likely to dip. Renters can expect smaller increases than they’ve seen for rentals in the last two years. But the cost of renting will remain high.

Rent increased in the area by 57 percent in the past year. Many residents struggle with the new cost of living, and their salaries don’t align with the increases.

With vacancies for affordable homes at an all-time low, the demand for affordable housing is huge. And that demand is expected to get worse as home ownership becomes less and less feasible.

Those looking for places to rent are finding that places are over capacity or out of their price range. And the cost of rent is expected to continue to increase, even if it’s not as dramatic.

Investing in Tampa Bay properties

The Tampa Bay housing market continues to remain hot as more people choose to relocate to the area every day.

Many investors view this as an opportunity. If you consider selling your home, the demand for affordable housing might benefit you.

Investors buy homes in the Tampa Bay area to flip or convert into rental properties. Airbnb-style properties are also expected to remain strong in the Tampa Bay area due to its booming tourism market. Investors are often interested in properties for that purpose as well.

Key Takeaways

If you’re considering listing your home, you may want to know what the Tampa housing market will be like in 2023.

Although the Tampa real estate market is slowing down, it remains hot. Sellers will continue to have much control this year, and market value continues to be much higher than it was a few years ago.

If you’re curious about the value of your home, submit your home address to our website today. We’ll provide a home valuation to help you sell your home quickly and conveniently!

The post The Tampa Bay Housing Market in 2023: Here’s What 4 Experts Say appeared first on iBuyer Blog.

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