8 Reasons Tampa’s Real Estate Market Will Stay Strong Through 2021
Buyers like to pay 90% of asking price, while sellers naturally prefer to receive 100%. On average, Tampa’s sellers are getting 99% of their asking price. Little Big Homes predicts this trend will continue through the third quarter of 2021. Here’s why.
Historically Low Mortgage Rates
Mortgage rates tumbled when COVID disrupted the nation's economy, achieving what many experts believed was impossible: rates below 3%. These astonishingly low rates have allowed buyers to stretch their budgets at a time when home prices are on the rise. Just compare the 2018 average rate to that of 2020:
Buyers who purchased a home in 2018 for $750k at 4.63% for 30 years would have monthly payments of $3,858 and a 30-year total of $1,388,985.
Buyers who purchased the same home in 2020 for $750k at 2.8% for 30 years would have monthly payments of $3,082 and a 30-year total of $1,109,415.
That’s a reduction of $776 per month in mortgage payments, and an eye-popping savings of $279,570 over the life of the loan.
Fast Growing Metro Area
With a busy downtown, wide range of attractions, lots of eateries and high quality of life, Tampa is one of the fastest-growing metropolitan areas in the country. A perennially popular place to live, work and play, Tampa was the #1 relocation destination in 2016 and again in 2020. About 115 new residents move to the Tampa MSA every day, putting us fifth in the nation.
Increasing Home Prices
Prices are climbing fast but are still affordable compared to real estate in other markets. Tampa homes are predicted to continue appreciating at a steady rate through September 2021.
Job Growth
The greater Tampa job market was booming before COVID. Unemployment, which was lower than 3% in February, jumped to nearly 20% overnight. But John Flanagan, CEO of CareerSource Tampa Bay, believes there’s cause for optimism. The post-COVID unemployment rate has dropped to 6.7% nationally, with local experts saying signs point to the unemployment rate in Tampa being even lower.
Booming Economy
Tampa is home to several Fortune 500 companies and thousands of small businesses, which is a good sign for future growth. Our economy is quite diverse with financial services, STEM, healthcare, research, education, tourism, beaches and military all making significant contributions.
Millennials Entering Market
The generation that was slow to show interest now accounts for more than half of all new home loans. They are “roaring into homebuying age,” says Rick Arvielo, CEO of New American Funding. “What the industry’s been talking about for a decade is whether they’re going to follow previous generations in terms of their desire to own homes,” he said, adding, “Yeah, they do—they have the same desires.”
Cost of Living
People from all over the country are currently considering a move to Tampa. Among the reasons is the low cost of living compared to other cities.
Tampa’s cost of living is 5% lower than the national average.
Housing expenses are 23% lower than the national average (although utility prices are 16% higher).
Healthcare in Tampa is 2% lower than the national average.
The Weather
The year ‘round outdoor life has always been, and will always be, a huge attractor. If you can survive the four months between June and September, you’ll be rewarded by eight pretty glorious months.
Carrie Rowland is an Accredited Buyer’s Representative,® Certified Probate Real Estate Specialist,® Military Relocation Professional,® Graduate of the Realtor Institute® and a Realtor-Associate at RE/MAX Alliance Group in South Tampa
