Here are our 5️⃣ Tampa & Pasco County real estate market predictions for 2020. ❄️? Based on experts across our industry, Realtor.com, Zillow, Redfin, Trulia, Market Watch, National Association of Realtors, Mortgage Banker Association, Bankrate and many more. As well as outside of the real east industry and experts in the United States economy.
If you’re curious about what’s going on in the Tampa, Hillsborough Pinellas or Pasco market right now, and how it will affect the industry in 2020… continue reading.
First, What is Going on Currently in the Tampa/Pasco Real Estate Market?
It’s important to look at what’s going on in order to see how it will affect what will happen in 2020. Numbers vary depending on the market.
- Closed Sales are up. For example, over 5% in Hillsborough/Tampa and over 13% in Pasco county.
- Median & Avg sales price are up. For example, over 2-4% in Hillsborough/Tampa and over 9-10% in Pasco county.
- Time till contract & close are down. Averaging about 30 days until under contract and about 70 days until close.
- Inventory down. For example, down 12% in both Hillsborough & Pasco counties. Meanwhile pending inventory/sales are up — furthering the low inventory problem.
- Months of inventory down. For example, down 14% in both counties.
Here is how the current market conditions in Tampa & Pasco county will affect you this year, in 2020.
1️⃣. Inventory will remain seriously low.
Despite builders having the highest confidence ever in the past decade, homes are still selling fast ?. Why? Because it is relative to demand.
This will increase the likelihood of any bidding war. It’s estimated that 1 in 4 homes will have a bidding war. This means you will need to be able to move quickly and with a strong offer!
It is even more important now than ever that you make sure your financials (pre-approval) are taken care of prior to house hunting. You don’t want to find your dream home and lose because you are not prepared, I’ve seen it happen often.
Modern home construction is still booming so there is less likely to see bidding wars on these types of homes. Meanwhile, resale single-family homes that are “move-in ready”, look & feel “newer”, in a great neighborhood, and competitively priced, with great marketing, absolutely will see bidding wars.
***Key: Due to HGTV, Chip & Joanna Gaines, and other Fix & Flip shows… it has created a craze of the newer, more modern look & feel. Buyers are less likely to want to make updates and upgrades than they used to be a decade ago, definitely, Millennials who “expect” new for resale prices. Meaning the more you can do to prepare your home the better off you will be, and the more money you will get. (We can help)
2️⃣. Home prices will continue to rise but at a slower pace.
Analysts expect home prices to continue rising anywhere from 2-5%. The Tampa market will likely be around 2% while neighboring counties could potentially reach 3-4%.
With Fortune 500 companies and many major corporations moving to Tampa the growth & hiring, as well as the low inventory & attractive interest rates, will continue to bolster a strong buyer pool. Making it more attractive to sell your home.
3️⃣. Millennials and First-Time Homebuyers will continue to make up the majority of buyers in the market.
Over 50% of mortgages are being taken out by Millennials. Meaning it is more important than ever to pander to the likes & dislikes of Millenials. Reaching from the low 30s to the low 40s. Most of the older generations are “typically” staying put in their homes.
Luckily for the Tampa and Pasco markets, we have the benefit of snowbirds & northerners moving down. There are more people leaving northern states like New York City, now more than ever because of all the financial benefits Florida has to offer. On top of the benefits of the Tampa & Florida lifestyle.
What this means for sellers is that your preparation, positioning, and promotion of your home needs to be tailored to these markets of buyers. (3 of the 5 P’s we cover in our Bello Home Team Selling System)
4️⃣. Interest Rates will likely stay below 4% but will rise.
Mortgage rates will remain stable at the current low end of the range. Mortgage rates will not fall much lower than 3.5% in 2020 and it will stay below 4.1% should the economy strengthen.
At least for the next year, there will be no major swing in the economy. No one can predict the future so there’s no saying what will happen in the next 1 to 3 years.
5️⃣. Is there a recession looming?
If there is a recession, (2 consecutive quarters of negative GDP growth), housing won’t be overly affected. The economy and the housing markets are not where they were back in 2008. It is a completely different mortgage and housing market. Banks are not lending like they used to and Home Building is not out of control. (it is actually much more controlled & confident)
This is the biggest question on most people’s minds. A recession is simply a period of temporary economic decline over 2 consecutive months. Even in good and bad times homes are being bought & sold. There are always people in the market.
With the inventory being low, our local economy being strong, and underwriting standards are stringent. There is no comparison to the factors that drove the last recession. Other than the 2008 recession, historically, economic recessions have actually resulted in home price increases (or they remained flat), and we expect no different should our economy experience a recession.
What Does This Mean For You As A Buyer or Seller?
If you’re a buyer who is ready to build equity and stop paying someone else’s mortgage, it’s time to invest in your future and enter the market… TODAY. We have stable home prices, but we expect competition to increase and inventory to remain tight. Before we enter the traditional busy season in the Spring, enter the market, while rates are low with less competition. If rates do go up and competition increases due to low inventory, your payment goes up and your buying power goes down.
If you are a first-time homebuyer and want more clarity, certainty, and confidence you can download our free guide, simply by clicking below.
If you’re ready to downsize, upsize, or cash out on your investment property, the inventory shortage is resulting in a seller’s market, meaning demand from buyers is high and your home will sell for a great price in a reasonable time. Make small, strategic investments to make your home attractive to buyers to maximize profit.
However, you cannot take shortcuts in getting your home ready for sale if you’re interested in maximizing profit. If your home is NOT compelling, it’s NOT selling.
Be sure to hire an experienced agent with:
- A proven track record of selling homes for top dollar with proper preparation and positioning in the market.
- A great marketing plan. Marketing is critical to increase demand and maximize profit.
- Client testimonials. Are the agent’s clients willing to take the time to endorse their services? That is a sign of a great agent.
- Deep market knowledge. They know how to price, they know how to market, and they know how to negotiate.
You can download our free guide we made for sellers covering how you get the highest price for your home in the current market using our Bello Home Selling System, just click below.
Is 2020 going to be the year in which you achieve your real estate goals? We’re here to help you or anyone you know who can use our assistance. Let’s chat.