The real estate brokerage firm, Redfin, released its housing market predictions for 2021. Some of the predictions included continued low interest rates, growth in home sales, and an increase in new home construction. As for Tampa, Redfin’s housing market prediction anticipates much growth. Tampa, along with San Antonio and Tucson, is set to be the hottest real estate market of 2021.
Housing Migrations Trends
Housing migration trends of recent years have seen Americans leave expensive coastal cities for more affordable Southern cities. Cities like Phoenix, Austin, and Miami once offered competitively priced housing but have quickly become unaffordable. The expensive coastal cities have left some priced out of the local housing market and forced to look at smaller cities like Tampa.
Prices and Sales Set to Rising
2020 was an excellent year for Tampa real estate, but 2021 is expected to be even better with an increase in both home prices and overall home sales. Potential homebuyers in Tampa are noticing the median home price in Miami is 24% more than Tampa ($355,000 vs. $271,000). These differences reflect an 8.7% increase in house prices and a 7.5% increase in total sales.
Tampa Real Estate Market in 2021
Housing market outlets like Realtor.com, Zillow, and Redfin are all in agreement over Tampa’s potential to be one of the hottest real estate markets in 2021, and Tampa will outperform the state average.
Factors That Will Drive Up Tampa Housing Prices in 2021
There are several factors at play that will drive the housing market during 2021. While mortgage rates are at historic lows, prospective homeowners will be tempted to enter the market. Housing inventory in the St. Petersburg-Clearwater-Tampa area is low, which will result in quick sales and increased prices.
Because of the low inventory, new home construction will become vital to meet demand. The increased demand for new construction should continue to result in a shortage of materials, pushing home prices up in 2021.
One significant factor affecting economic growth in Tampa is the increase in jobs. The increase in well-paying jobs in the Business and Tech sectors led to Tampa attracting more professionals. In return, the economic growth and expansion led to higher housing demand in the area.
Tampa’s job market was the best performing in the Florida area last year, creating over 30,000 private-sector jobs. Financial, manufacturing, and government jobs are among the top growing sectors. Additionally, a highly educated workforce makes Tampa an attractive destination for businesses.
Tampa’s population increased by 150,000 over the last decade. Tampa, already one of the top 50 largest cities nationwide, is proving to be an attractive destination. Because of this, the Tampa Bay and Hillsborough County metropolitan area population is expected to reach almost 4 million by 2040.
Quality of Life
One of the most significant factors that attract people to Tampa is the quality of life. The popular city has become known for several qualities: fantastic weather, affordability, steady job growth, and a year around festival atmosphere.
Being one of the cities hardest hit during the 2008 recession, Tampa has managed to recover through innovative development that transformed the city. Tampa positioned itself as a desirable, diverse city perfect for young professionals and those looking to start a family by reinventing the downtown and waterfront areas.
Water Street Tampa and the 2.5-mile Riverwalk are recent developments that make the Metro area a vibrant, happening place to live. With the beautiful weather, amenities, and accessibility, it is no surprise that Tampa is the new place many want to call home.
Marimark Realty is a full-service real estate company in Tampa, Florida. Our focus is on providing a personalized experience for both buyers and sellers of residential and commercial properties, as well as investors.
To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.