Are home prices dropping in Tampa?

No. Home prices in Tampa are actually on the rise: As of April 2023, the median price in the city was $417,500, a $12,500 increase over March’s median and a 4.4 percent increase over April of last year, according to Redfin.

Is Tampa a buyer’s or seller’s market?

It’s a little bit of both right now, actually. Home prices are increasing and there is strong buyer demand with lots of new residents moving here, which gives the edge to sellers. However, homes are remaining on the market far longer than a year ago — 22 days in April 2023, compared to just 7 days in April 2022. In addition, more than 28 percent of homes that sold in April had to drop their prices before closing the deal.

Tampa housing market: Everything you need to know

Written by

Mia Taylor,

Edited by

Michele Petry

Published on June 08, 2023 | 6 min read

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Illustrated collage featuring houses surrounded by palm trees and water

A city known for its outdoor lifestyle and striking setting on Florida’s Gulf Coast, Tampa is Florida’s third largest city — and growing. It placed in the top five large markets in the U.S. on Bankrate’s recent Housing Heat Index rankings and was named one of the most popular destinations for relocating homebuyers in 2022 by Redfin. That popularity has driven up home prices in the area. Considering buying a home here, or selling one to take advantage of its growing popularity? Here’s a closer look at the Tampa housing market.

Tampa housing market overview

There are pros and cons to bear in mind when considering the real estate market in Tampa these days. While it’s typically one of the more affordable markets for homebuyers relative to the Florida housing market overall, prices have also been trending upward, according to data from Redfin. In fact, the average home price in Tampa is now higher than the national median price.

Despite rising prices, though, there is still plenty for buyers to smile about: Nearly 30 percent of listings in April had price drops, per Redfin, and homes are sitting on the market for longer than they did last year, which provides some breathing room for house-hunters.

Tampa housing trends and stats

In April 2023, the median sale price for a home in Tampa was $417,500, according to Redfin data. That’s up 4.4 percent year-over-year, and is higher than the national median sale price of $388,800.
Homes here spent an average of 22 days on the market in April before selling. That’s relatively fast, but still significantly longer than April of last year, when the figure was just 7 days.
Just 633 Tampa homes sold in April, which is a decrease of 16.7 percent year-over-year.
The sale-to-list ratio was 97.6 percent, meaning homes are typically selling for just under asking price.
Florida closing costs typically amount to about 2.3 percent of a home’s purchase price, according to data from ClosingCorp. On a median-priced $417,500 home, that comes to $9,602.

Should you buy or sell in the Tampa housing market?

On the fence about whether it’s the right time to buy or sell in Tampa? Here are some factors to keep in mind.

If you’re a home seller

Tampa is something of a mixed bag for sellers right now. Despite the increase in sale prices — April’s median nearly matches last year’s peak price of $430,000 in June — the actual volume of sales has declined year-over-year. What’s more, homes are taking about two weeks longer to sell now than they did a year ago, and today’s high mortgage rates are keeping plenty of would-be buyers on the sidelines for the time being.

Still, Tampa remains a popular market that’s attracting a steady stream of new residents, and that means a steady stream of homebuyers. If you’re considering selling, work with a local real estate agent to understand exactly how much your home is worth. A knowledgeable agent can help you price your home appropriately for a quick, smooth sale.

If you’re a homebuyer

There are several factors in your favor at the moment if you’re on the hunt for a home in Tampa. Homes are sitting on the market longer than they did a year ago, which gives buyers more time and breathing room, and most of them are selling for a bit less than asking price. This gives you more leverage than you would have had if you were buying last year.

Still, homes here are already more expensive than the national median price, and a growing market means there are more other buyers to compete with. Before you start home shopping, take the time to get preapproved for a mortgage. This can help define your purchase budget more clearly by giving you a solid idea of how much a lender is likely to approve you for. Having a preapproval letter to accompany your offer also lets sellers know that you are a serious, qualified buyer. And if you’re one of the many people moving here from out of town, don’t forget to consider the general cost of living compared to your previous city as well.

Tampa housing market predictions

Rising mortgage interest rates and rising home prices are causing sales to slow in Tampa, and homes are staying on the market longer. This may cause some concern, but there’s no need to panic: Experts say a housing market crash is very unlikely, in Tampa and the rest of the country as well.

Unusually hot housing markets often undergo a course correction eventually, and Tampa continues to be a desirable location that’s attracting many buyers, particularly from out of state. The Tampa market may shift a bit more in favor of buyers by the end of 2023, according to a recent study by Knock, but it seems set to remain robust.

Find a Tampa real estate agent

Navigating the complexities of a shifting real estate market like Tampa’s is far less stressful when you have a professional by your side. Working with a local agent who knows the area well can help buyers find a home that works for them, and help sellers get the best possible deal on their home.

Before choosing an agent, be sure to shop around: Ask friends and relatives for recommendations, look for yard signs in neighborhoods you’re interested in and take the time to interview multiple candidates. The better your agent understands your goals, the better an experience your real estate journey will be.

Important note about Florida homeowners insurance

The home insurance market in Florida is in crisis. Since 2017, many insurance carriers have left the state, gone insolvent or tightened their underwriting restrictions, making it difficult for homeowners to find coverage. Many of the companies that remain have chosen not to renew existing policies, leaving owners in the lurch.
Fraudulent roofing claims are mostly to blame, and the devastating effects of Hurricane Ian in September 2022 complicated the issue further. According to a report from the governor’s office, Florida accounts for 79 percent of the country’s home insurance lawsuits.
New insurance-reform laws went into effect in 2022 to try to stabilize the situation, but it may be some time before these laws produce meaningful results, and homeowners could see premiums that exceed several thousand dollars a year. Before you buy a Florida home, consult closely with your real estate agent, and possibly a local attorney, to determine whether the property will be insurable at a cost you can afford.

FAQs

No. Home prices in Tampa are actually on the rise: As of April 2023, the median price in the city was $417,500, a $12,500 increase over March’s median and a 4.4 percent increase over April of last year, according to Redfin.
It’s a little bit of both right now, actually. Home prices are increasing and there is strong buyer demand with lots of new residents moving here, which gives an edge to sellers. However, homes are remaining on the market far longer than a year ago — 22 days in April 2023, compared to just 7 days in April 2022. In addition, more than 28 percent of homes that sold in April had to drop their prices before closing the deal.