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Is Tampa The Best Market For Real Estate Investment?

How is The Tampa FL Real Estate Market 2019?

If you’re keen to invest in your future in the Tampa real estate market in 2019 and buy before prices become out of reach, you must peruse till the end. Tampa is gaining popularity owing to its hot housing market where a number of investors have been putting in their stakes. 

If you are a real estate investor, Tampa has a track record of being one of the best long term real estate investments in the U.S. housing market. The Tampa housing market is growing steadily, prices are still low and properties have a good chance for appreciation in the coming years.

2017 was an important year for the real estate in Tampa FL as it experienced an 11.1% increase in the housing mostly owing to the growth in employment opportunities. The average price of residential properties in Tampa is around $136,000. However, investors can also find properties for as low as $90,000.

Tampa Real Estate Properties For Sale

On the other hand, the average monthly rent is around $995. With a population of more than 4 million, Tampa, FL is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations.

There are a number of economic and development prospects attached to this market and Tampa, FL was described as one of the hottest real estate markets in the US in 2018. Let’s take a close look at the Tampa real estate market trends and forecasts for 2019 & 2020 and find out why to invest in this hot market in the state of Florida.

Tampa Real Estate Market

Original Photo via Pixabay

Tampa Real Estate Market Forecasts 2019 & 2020

Tampa Real Estate is one of the most affordable in the state. Tampa Florida was the ranked as the 5th hottest real estate market for rental homes in 2017. There’s a tremendous amount of pent-up demand for entry level single family homes in the real estate in Tampa FL. 

The real estate data from Zillow shows that the median home value in Tampa is $219,100. Tampa home values have gone up 2.5% over the past year and Zillow’s Tampa real estate market prediction is that the prices will rise 0.0% within the next year. The median list price per square foot in Tampa is $198, which is higher than the Tampa-St. Petersburg-Clearwater Metro average of $146.

The median price of homes currently listed in Tampa is $329,990 while the median price of homes that sold is $223,300. The median rent price in Tampa is $1,600, which is higher than the Tampa-St. Petersburg-Clearwater Metro median of $1,585.

Tampa FL Median Price Trends In 2018

The graph below shows the median home value for homes in Tampa, FL to increase by 0.0% to $219,000 in July 2020. Currently the The “Zillow Home Value Index” for Tampa is $219,100. The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given day. The Zestimate home value is Zillow’s estimated market value for an individual home and is calculated for about 100 million homes nationwide. It is a starting point in determining a home’s value and is not an official appraisal.

Tampa Real Estate Market Forecast

Graph Credits: Zillow.com

Tampa Housing Market Forecast 2019 – 2021

The Tampa housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Tampa is 84%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Tampa is 84% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd  Quarter of 2018.

Check this page each quarter for updates to the Tampa, FL Real Estate Market Forecast.

Tampa Real Estate Market Trends

According to Trulia, Tampa real estate market trends 2% year-over-year rise in median sales price and a 3% rise in median rent per month. Tampa market trends indicate an increase of $3,100 (1%) in median home sales over the past year. The average price per square foot for this same period rose to $159, up from $152.

Trulia has 3,239 resale and new homes for sale in Tampa, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price for homes in Tampa for Nov 7, 2018 to Feb 6, 2019 was $225,000 based on 2,011 home sales. Average price per square foot for Tampa was $160, an increase of 9% compared to the same period last year. The median rent per month for apartments in Tampa for Jan 12 to Feb 12 was $1,550.

Tampa Real Estate Market Trends

Graph Credits: Trulia.com

Tampa’s home resale inventories is 2,316, which increased 1 percent since April 2018. The median list price per square foot in Tampa is $170. April 2018 was $171. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May (Source: Movoto.com)

As per the real estate company named Redfin, the Tampa housing market is very competitive. Homes in Tampa receive 1 offers on average and sell in around 23 days. The average sale price of a home in Tampa was $245K last month, up 7.2% since last year.

The average sale price per square foot in Tampa is $154, up 7.7% since last year. Homes typically receive 1 offer. Homes in the Tampa housing market sell for about 2% below list price and go pending in around 23 days. Hot homes for sale in Tampa, FL can sell for around list price and go pending in around 7 days.

There are 4,973 homes for sale on Realtor.com. 288 of which were newly listed within the last week. Additionally, there are 1,291 Tampa rentals for sale, with a range of $101 to $20,000 per month. In July 2019 the Tampa housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

Tampa Housing Market Trends

Sale-to-List Price Ratio: 98.47% | Realtor.com

In July 2019, the median list price of homes in Tampa, FL was $277K, trending up 3.6% year-over-year. The median listing price per square foot was $160. The median sale price was $246K. On average, homes in Tampa, FL sell after 60 days on the market. The trend for median days on market in Tampa, FL has gone down since last month, and slightly down since last year.

Tampa Housing Market Trend

Graph Credits: Realtor.com

The median list price in Tampa is $329,900 on Movoto.com. The median list price in Tampa was less than 1% change from August to September. Tampa’s home resale inventories is 2,667, which increased 0 percent since August 2019. The median list price per square foot in Tampa is $173. August 2019 was $174. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in September.

Tampa Home Prices Trends

Graph Credits: Movoto.com

36 Facts About Tampa Florida And Housing Market Statistics

36 Facts About Tampa Florida

Original Photo via Pixabay

1

 Tampa has an unemployment rate of only 4.5%

2

 Tampa is Fastest growing city in the state of Florida

3

 Moderate price increases expected in 2017

4

 Growing population fuels housing needs

5

 Cost of living 23% below U.S. average

6

 Median Sales Price: $225,000 (On Trulia)

7

 Price Per Square Ft: $160

8

 Homes For Sale: 3,598 (Trulia)

9

 Median Rent Per Month: $1,550

10

 Median Household Income: $43,450

11

 Home Owners: 61%

12

 Single Residents: 39%

13

 Median Age: 37

14

 College Educated: 33%

15

 Transportation: 94% people commute by car, public transport available

16

 Tampa is an extremely ethnically-diverse city with a variety of racial and ethnic groups

17

 New supply of Tampa Florida real estate for rent in 2018 could be as much as 50 percent higher than either 2017 or 2016

18

 The people of Tampa are tilting from multi-family to single family homes

19

 There are accelerations expected in new single-family household formation in the Tampa FL Real Estate sector

20

 Listed inventory for sale, as measured as a percentage of total stock of real estate in Tampa FL, is at its lowest recorded level in more than 30 years

21

 The single-family homes in Tampa real estate market are expected to having a double-digit growth in 2018

22

 Growth in single-family housing, both owner-occupied and rental in 2018

23

 Older Millennials are beginning to make the move from apartments into single-family dwellings

24

 2016 household income got up to about a little over $59,000 which is driving some better demand, but it’s also driving higher and higher household prices

25

 The employment in Tampa is expected to be up by 2 percent, adding 26,600 jobs. The per capita income to increase by 5 percent in 2018

26

 The construction activity, mostly single family homes, in Tampa real estate market to rise by nearly 12 percent, up to 20,000 permits

27

 The median price of new homes to increase by 4.3%

28

 Investors are shifting their focus more significantly in favor of single-family rental homes

29

 Median housing resale price in Tampa market is expected to be up 7.6% in 2018

30

 Single-family permits in Tampa market are expected to be up 11 percent in 2018

31

 Tampa’s employment is expected to be up 2 percent, which is more than 26,600 jobs

32

 There’s a two-month supply of resale inventory, which is virtually none

33

 Tampa is ranked No. 2 in the United States for people moving into the area, based on U-Haul truck rental pricing

34

 A consumer preferences survey by John Burns Real Estate Consulting reveals that three community features important to buyers are safety, location and street appeal

35

 The John Burns survey also shows that important home features are design, price and function

36

 The vast majority (84 percent) of buyers desire a detached, single-family home, and 62 percent expect to pay $250,000 to $450,000 for it

Some of the above mentioned statistics on real estate in Tampa FL have been taken from Laker/Lutz News.com.

Tampa, FL Single Family And Multi-Family Home

Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.

Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

Zillow has 1,367 single family homes for sale and 338 homes for rent in the Tampa FL real estate market. Under potential listings, there are about 20 Foreclosed and 380 Pre-Foreclosures homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

As per the data from the real estate company called Neigborhoodscout.comthe median house price in Tampa, FL is $208,862.  Single family detached homes are the single most common housing type in Tampa, accounting for 53.76% of the city’s housing units.

One or two bedroom single family detached homes are most common housing units in Tampa. Tampa has a mixture of owner-occupied and renter-occupied housing. Other types of housing that are prevalent in Tampa include large apartment complexes, duplexes, homes converted to apartments and a few row houses.

Tampa, FL Foreclosures And Bank Owned Homes 2019

As per the Tampa foreclosure data by Zillow, the percent of delinquent mortgages in Tampa is 1.3%, which is higher than the national value of 1.1%.

With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.

The percent of Tampa homeowners underwater on their mortgage is 7.5%, which is higher than Tampa-St. Petersburg-Clearwater Metro at 5.9%.

Foreclosures in Tampa 1,658
Homes for Sale in Tampa 1,579 (RealtyTrac)
Recently Sold 10,474
Median List Price $265,000 (0% ⇑ vs Jun 2018)

There are currently 1,658 properties in Tampa, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,579. In July 2019, the number of properties that received a foreclosure filing in Tampa, FL was 8% lower than the previous month and 24% lower than the same time last year.

Best Places To Buy Tampa Rentals

If you are looking to invest in Tampa rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Tampa rental real estate and you should be able flip it for a lump sum profit.

When looking to invest in Tampa real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Tampa investment property should be low. The neighborhoods in Tampa must be safe to live in and should have a low crime rate.

The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 131 elementary schools, 75 middle schools, 48 high schools and 120 private & charter schools. There are 166 neighborhoods in Tampa.

Some of the best neighborhoods in Tampa, Florida are Old Seminole Heights, Sun Bay South and Tampa Palms. Sunset Park has a median listing price of $1.1M, making it the most expensive neighborhood. East Tampa is the most affordable neighborhood in Tampa, FL with a median listing price of $149.9K.

Here are the best neighborhoods to invest in Tampa rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 Ybor City

2

 N Boundary Blvd / Radar Rd

3

 U of South Florida-Main Campus / E Fletcher Ave

4

 N Tampa St / W Columbus Dr

5

 N Meridian Ave / E Washington St

6

 N Morgan St / E Columbus Dr

7

 City Center

8

 N Florida Ave / W Emma St

9

 N Taliaferro Ave / E Osborne Ave

10

 Gary

Is Tampa a Good Place to Invest in Real Estate?

Is Tampa Real Estate Good For Investment

Original Photo via Pixabay

Now that you know where Tampa is, you probably want to know why we’re recommending it to real estate investors. Is it worth buying a house in Tampa, FL? Investing in real estate is touted as a great way to become wealthy.

Many real estate investors have asked themselves if buying a rental property in Tampa is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Tampa housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Tampa but we have collected ten evidence based positive things for those who are keen to invest in the Tampa rentals in 2019.

Investing in Tampa rentals will fetch you good returns in the long term as the home prices in Tampa have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Tampa FL real estate market which can help investors who are keen to buy an investment property in this city.

1. Tampa Is Fast Growing Metro Area

Tampa, Florida is one of the fastest growing metropolitan areas of the country with a busy downtown area, range of eateries and tourist attractions.

Investors who choose this market will experience a high growth in their investments as it is currently one of the hottest grounds for residential and commercial properties. It also offers a great overall quality of life making it a popular residential for many family units.

2. Increasing Tampa Home Prices

The prices of residential properties in Tampa are growing at a fast pace, though they are still affordable compared to other real estate markets in the country. This is the time for investors to get hold of properties and keep them for some time before selling them at a higher price since Tampa real estate market is predicted to flourish during 2018.

3. Increasing Tampa Rental Prices

Investors can buy properties at lower rates right now and rent them out to new residents of the city to improve their cash flows. Later on, when the selling price of housing property increases then they can sell out to better prospects.

This basically means that the Tampa real estate market is promising for short term leases at this point, including rental homes and tourist accommodations.

4. Job Growth

Job growth in an area is a sure way of boosting its real estate market for both residential and commercial properties. Tampa real estate market has also experienced a similar growth in requirement of single and family homes since more people are moving to this flourishing metropolitan area for jobs.

The influx of people into Tampa is especially occasioned by the fact that it one of the fastest growing job hubs in the country.

5. Improved Quality of Life

Tampa is one of the fastest growing metropolitans in the US, which suggests that the general quality of life is higher than other comparable cities and towns. It is not only a growing real estate market, it is also one of the most popular recreational hubs of the city.

People choose to reside here because of the great prospects of life that it offers, and this directly impacts the Tampa real estate market.

6. Booming Economy

Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making way to Tampa for search of better prospects and lesser expenses for running their start-ups.

Acquiring residential spaces is one of earliest priorities for such professionals when they move here. Tampa has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth.

7. Tampa Bay’s Tourist Attraction

There are a number of nature parks, landmarks, museums, and eateries for tourists to visit in Tampa. Tourist influx also means increase in short term residential contracts, which is a selling point of Tampa real estate market in 2018.

Main tourist attractions include Big Cat Rescue, Busch Gardens Florida, Eureka Springs Park, and Tampa-Bay History Center among many others. Growing tourism has a tremendous positive effect on the real estate in Tampa FL.

8. Cost of Living

Since there is prospective growth in the Tampa real estate market, people from all over the country are considering a move here. One of the most important reasons is the affordable cost of living in Tampa compared to other cities.

This has made it a top choice for retirees and small families that are looking for residence and to generally improve the quality of their life.

9. Comfortable Weather

The vibrant living environment of the city owes a great deal to its comfortable temperature. The average temperature is 99 F which is extremely moderate and allows better productivity for human lives. The weather conditions are also an important factor when it comes to motivating people to move here.

10. Government Facilities

The healthcare, education and transportation facilities in Tampa are also impeccable which is why families with young children and many retirees prefer Tampa and are choosing to reside in Tampa since it offers them with an upgraded quality of life. Not only that, Tampa also hosts a number of entertainment activities for people of all age groups depending upon their tastes.

Tampa Real Estate Investment

Maybe you have done a bit of real estate investing in Tampa, Florida but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.

A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.

Therefore, finding a good Tampa real estate investment opportunity would be a key to your success. in If you invest wisely in Tampa rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

The less expensive the Tampa rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Tampa, you should focus on neighborhoods with relatively high population density and employment growth.

Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Tampa, FL. Compared to markets in Atlanta, Nashville and Cleveland, Tampa has higher prospects when it comes to residential and commercial property investments.

The Tampa real estate market has been estimated to grow rapidly during 2019. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa housing market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.

Last year, Realtor.com, rated the top 100 markets according to factors including employment growth, household growth and unemployment. In all categories, real estate in Tampa FL fares considerably better than the national average.

The one category in which Tampa FL real estate market especially shines is new-home starts, predicted to soar by more than 20 percent next year. That would ease one of the biggest constraints on the local real estate market – a shortage of homes for sale.

The biggest demand will continue to be for “moderately priced homes” — those under $300,000 in most places but in the $500,000 to $800,000 range in expensive South Tampa.

Tampa Investment Properties For Sale ⇐ Click Here

Buying an investment property is different from buying an owner-occupied home. Our Tampa investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Tampa, Florida.

Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

NORADA REAL ESTATE INVESTMENTS strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Tampa real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.

Other Hot Markets In Florida To Invest In Real Estate

Apart from the Tampa real estate market, you can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment.

The area has recovered from the Great Recession, and a number of factors will insulate it from a future downturn. The Ocala housing market is buoyed by several nearly recession proof industries.

It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in Miami.

Also, given that this is Florida, it shouldn’t be surprising that retirees are a disproportionately large source of demand for Ocala rental houses. The large number of retirees here creates significant demand for medical professionals and caregivers.

The horse-centered community offers a number of good paying jobs to trainers, veterinarians and animal caregivers. There are several manufacturers in the area such as mobile home manufacturers and an EMS vehicle maker.

Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland FL real estate market presents the perfect balance of currently affordable real estate for buyers and future growth.

We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.

While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten.

This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.

The median household income in Lakeland, Florida is around $40,000, more than ten thousand dollars below the national average. This creates strong demand for Lakeland rental homes, especially those that low income residents can afford.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Top Rental Property Markets                                                                                  https://www.mashvisor.com/blog/top-10-market-buying-rental-property                        http://lakerlutznews.com/lln/?p=54818

Hot Housing Market
https://www.domainhomes.com/tampa-bays-red-hot-housing-market-2018-another-2017

10 Reasons to live in Tampa
https://www.touristmaker.com/blog/10-reasons-live-tampa-bay-florida

Market Data, Trends and Forecast                                                                                    https://www.zillow.com/tampa-fl/home-values                                                      https://www.realtytrac.com/statsandtrends/foreclosuretrends/fl/hillsborough-county/tampa https://www.neighborhoodscout.com/fl/tampa/real-estate                                          https://www.movoto.com/tampa-fl/market-trends                    https://www.redfin.com/city/18142/FL/Tampa/housing-market                        https://www.trulia.com/real_estate/Tampa-Florida/market-trends            https://www.realtor.com/realestateandhomes-search/Tampa_FL/overview http://www.tampabay.com/news/business/realestate/How-will-Tampa-Bay-home-prices-sales-fare-in-2018-_163070878


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