Both Largo (33778) and Carrollwood area of Tampa (33624) made list for Top Ten – Florida’s Hottest Zip Codes (based on supply & demand).
Due to significant increases of property values, both Pinellas & Hillsborough counties have lowest level of foreclosure filings since 2006. Inventory of bank-owned properties available is low, and is expected to continue to drop.
Fewer Homes, Higher Prices
“Bay area sales prices surge 20 percent in January as supply shortage continues.”
Year-over-year price increase of 20% for homes in Tampa Bay area from January 2015 to January 2016. Prices have been accelerating due to demand far outweighing supply.
Hello Tampa Bay,
Here are predictions for 2016:
1. 2016 = NORMAL
We are expecting a healthy growth in prices, although at a slower pace compared to recent years. After many years of abnormal trends, market conditions are becoming more normal. I expect that home prices will increase at a more normal rate due to the market being more balanced. I predict that home values will increase 4-5% in 2016.
2. Higher Rent
Rents have been climbing at an explosive rate, increasing more rapidly than home prices. This trend will continue to enlarge the gap of affordability of buying versus renting.
3. Higher Mortgage Rates
Mortgage rates are expected to be pushed higher, but the level of increase should be manageable for most buyers. I predict that the 30-year fixed-rate mortgage will end 2016 about 50 basis points higher than today at around 4.5%.
4. Entry-level New Homes
New construction will continue the trend towards entry-level homes. Builders will continue to shift to more affordable homes for entry-level buyers. This is largely due to increased access to credit, as well as changing demographics.
Milennials (ages 25-34) will continue to play a major force in the market. They represented 1/3 of home buyers in 2015 at nearly two billion sales.
Michael A. Melnyk
Why the holidays are the best time to buy or sell a house.
Interesting article from Clark Howard on why the holiday season is a great time to buy or sell a home: