Yes, Tampa is a seller’s market. It has been a seller’s market over the past couple of years, arguably since the second half of 2012 when housing inventory fell to less than 5.5 months’ supply of homes. In May this year, the housing supply dropped down to only 3.9 months.
Balanced Market
The Greater Tampa Association of Realtors (GTAR) says that 5.5 months is the benchmark for a balanced market while other real estate analysts set the benchmark at 6 months. The benchmark is the point where the number of listings roughly equals the number of buyers, or the point when the market favors neither the buyer nor the seller.
Decline in Supply of Tampa Homes
In May 2015, the supply of single-family homes in Hillsborough County dropped to 3.9 months, the lowest since November 2013, and much lower than supplies over the years and months before November 2012.
There were only 5,495 single family homes in the Tampa market in May 2015, a drop of 4.6 percent over the year, and a big drop from the year 2007 when around 22,000 homes were being offered for sale.
Price Increase
Another indication of a sellers’ market is the continued increase in home prices. The median price for single family homes sold in May 2015 was $204,000, a big jump from the previous month’s median sale price, which was $195,000, and an increase of 12.4% from the previous year’s median price.
Tampa Homes Getting Sold Faster
Homes in Hillsborough County are also being grabbed fast by buyers. In May 2015, single-family homes sold stayed on the market for a median of only 42 days, the fastest pace since November 2013, and faster than in 2011 when the median number of days was 60. Most of the property owners get a Fair Cash Deal on your home and avoid the hassle of listing your home, making repairs, or the months of uncertainty.
Home Sellers Getting What They Want
Because home sellers know the dwindling number of homes available for sale, they hold out for offers that approach or surpass their desired prices. In May 2015, sellers of single-family homes in the Tampa area got 95.3% of what they wanted, the biggest share since November 2013, and much bigger than in 2011 when buyers usually get their 88-percent bids accepted.
Bidding Wars
It’s also now a common sight to see listing price and sold price comparisons with lots of sold prices surpassing the listing prices. These surely are the results of bidding wars, in which homebuyers want to make sure they get the homes they want.