More Buyers, Less Inventory Push Up Tampa Bay Home Prices

The supply of all types of Tampa Bay homes has been lingering at a low four months’ supply for many months now. And this is one of the reasons why the median and average prices of Tampa Bay homes have been steadily rising.

Based on data from the My Florida Regional Multiple Listing Service Inc., the median sale price of all types of Tampa Bay homes has gone up to $164,000 in February 2016, up by 15% from February last year and up by a stunning 82% from February five years ago.

Data covers all residential properties in the Tampa Bay counties of Hillsborough, Pinellas, Pasco and Hernando. These counties also form the metro area often called Tampa-St. Petersburg-Clearwater metro area.

MEDIAN SALE PRICE of All Types of Tampa Bay Homes Sold from February 2006 to February 2016

Month Median Sale Price
Feb 2006 $210,900
Feb 2007 $203,900
Feb 2008 $173,063
Feb 2009 $125,000
Feb 2010 $119,000
Feb 2011 $90,000
Feb 2012 $102,000
Feb 2013 $121,850
Feb 2014 $130,000
Feb 2015 $142,550
Feb 2016 $164,000

As you can see in the table below, Tampa Bay’s housing inventory has been on a downward trend since the 10-year inventory peak in February 2007. From month to month, the supply decreased, and in February this year, the total went down to 18,530, not even half of each of the totals in February 2007, February 2008 and February 2009.

Tampa Bay’s housing inventory for many months now represent only four months of supply. Theoretically, if no new inventory comes, all available homes for sale will be gone in four months.

Real estate analysts say that in many real estate markets, when the housing supply goes below 6 months, the market is a seller’s market, meaning there are more buyers than homes available for sale. There are more buyers competing to buy a certain home. We can therefore argue that the Tampa Bay real estate market is a seller’s market.

Another thing that indicates Tampa Bay’s being a seller’s market is that sellers are getting their desired sale prices.  For the past several months, sellers have been getting 96 to 97 percent of the price they wanted for their house to get sold for.

TOTAL NUMBER of All Types of Tampa Bay Homes Listed for Sale from February 2006 to February 2016

Month Number of Homes for Sale
Feb 2006 30,207
Feb 2007 46,676
Feb 2008 45,648
Feb 2009 39,706
Feb 2010 33,808
Feb 2011 33,025
Feb 2012 23,405
Feb 2013 19,604
Feb 2014 19,313
Feb 2015 20,757
Feb 2016 18,530

TOTAL NUMBER of All Types of Tampa Bay Homes Sold from February 2006 to February 2016

Month Number of Homes Sold
Feb 2006 3,582
Feb 2007 2,519
Feb 2008 1,869
Feb 2009 2,153
Feb 2010 2,475
Feb 2011 3,090
Feb 2012 3,168
Feb 2013 3,547
Feb 2014 3,493
Feb 2015 4,296
Feb 2016 4,427