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Top Reasons To Invest In Tampa Real Estate Market In 2018

Tampa Real Estate

Tampa Real Estate is gaining popularity owing to its housing market where a number of investors have been putting in their stakes. Tampa FL Real Estate 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. 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 has been described as one of the hottest real estate markets in the US in 2018. Compared to markets in Atlanta, Nashville and Cleveland, Tampa has higher prospects when it comes to residential and commercial property investments.

Tampa Real Estate Market

Tampa Real Estate – Market Forecast And Trend 2018

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. 

Tampa FL Median Price Trends In 2018

Tampa Real Estate Market Statistics 2018

  • Tampa has an unemployment rate of only 4.5%.
  • Tampa is Fastest growing city in the state of Florida.
  • Moderate price increases expected in 2017.
  • Growing population fuels housing needs.
  • Cost of living 23% below U.S. average.
  • Tampa is an extremely ethnically-diverse city with a variety of racial and ethnic groups.
  • New supply of Tampa Florida real estate for rent in 2018 could be as much as 50 percent higher than either 2017 or 2016.
  • The people of Tampa are tilting from multi-family to single family homes.
  • There are accelerations expected in new single-family household formation in the Tampa FL Real Estate sector.
  • 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.
  • The single-family homes in Tampa real estate market are expected to having a double-digit growth in 2018.
  • Growth in single-family housing, both owner-occupied and rental in 2018.
  • Older Millennials are beginning to make the move from apartments into single-family dwellings.
  • 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.
  • 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.
  • The construction activity, mostly single family homes, in Tampa real estate market to rise by nearly 12 percent, up to 20,000 permits.
  • The median price of new homes to increase by 4.3 percent.
  • Investors are shifting their focus more significantly in favor of single-family rental homes.
  • Median housing resale price in Tampa market is expected to be up 7.6 percent in 2018.
  • Single-family permits in Tampa market are expected to be up 11 percent in 2018.
  • Tampa’s employment is expected to be up 2 percent, which is more than 26,600 jobs.
  • There’s a two-month supply of resale inventory, which is virtually none.
  • Tampa is ranked No. 2 in the United States for people moving into the area, based on U-Haul truck rental pricing.
  • A consumer preferences survey by John Burns Real Estate Consulting reveals that three community features important to buyers are safety, location and street appeal.
  • The John Burns survey also shows that important home features are design, price and function.
  • 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 (See reference section for the page link).

Tampa Real Estate Market Forecast 2018

According to Zillow.com, the median home value in Tampa is $208,132. Tampa home values have gone up 15.3% over the past year and Zillow predicts they will rise 7.9% within the next year. The median list price per square foot in Tampa is $180, which is higher than the Tampa Metro average of $138. The median price of homes currently listed in Tampa is $292,054 while the median price of homes that sold is $230,700. The median rent price in Tampa is $1,450, which is lower than the Tampa Metro median of $1,495.

The graph below shows the median home value for homes in Tampa, FL to increase by 7.9% to $224,000 in Mar 2019. Currently the The “Zillow Home Value Index” for Tampa is $208,132. 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 Courtesy – Zillow.com

Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. Another statistics from Zillow is that the percent of delinquent mortgages in Tampa is 2.3%, which is higher than the national value of 1.6%. 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 11.4%, which is higher than Tampa Metro at 9.0%.

Zillow has 2414 homes for sale and 2404 homes for rent in the Tampa FL real estate market. Under potential listings, there are about 74 Foreclosed and 487 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).

Tampa Real Estate Market Trend 2018

According to Trulia.comTampa Fl real estate market trends for 2018 indicate an increase of $19,000 (9%) in median home sales over the past year. The average price per square foot for this same period rose to $156, up from $141. Housing price trends in Tampa show a 9% year-over-year rise in median sales price and a 5% rise in median rent per month.

  • The median sales price for homes in Tampa for Feb 10 to May 9 was $228,000 based on 2,253 home sales.
  • Average price per square foot for Tampa was $156, an increase of 11% compared to the same period last year.
  • The median rent per month for apartments in Tampa for Apr 9 to May 9 was $1,575.
  • The median list price in Tampa is $339,000. The median list price in Tampa went up 1% from April to May.
  • 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)

Top Reasons To Invest In Tampa Real Estate Market In 2018

The following are the top 10 reasons to invest in Tampa real estate market in 2018:

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 gro.unds for residential and commercial properties. It also offers a great overall quality of life making it a popular residential for many family units.

Increasing House 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.

Increasing Rents

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.

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.

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 real estate in Tampa Florida.

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.

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.

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.

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.

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.

Should You Invest in Tampa Real Estate Market?

The real estate in Tampa Florida has been estimated to grow rapidly during 2018. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.

For its 2018 housing forecast released, 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 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.

We recommend 8 other real estate markets for turnkey rental property investing:

 

REFERENCES

https://www.mashvisor.com/blog/top-10-market-buying-rental-property/ http://lakerlutznews.com/lln/?p=54818
https://www.domainhomes.com/tampa-bays-red-hot-housing-market-2018-another-2017/
https://www.touristmaker.com/blog/10-reasons-live-tampa-bay-florida/ http://www.tampabay.com/news/business/realestate/How-will-Tampa-Bay-home-prices-sales-fare-in-2018-_163070878

 


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