As we look towards the real estate future in a new year, we hope to see some normalcy amidst the uncertainty that continues to surround the pandemic. Although the COVID-19 vaccine will introduce some much-needed change, we can expect to see a few of the same 2020 real estate trends continuing well into the new year, along with some new ones. Here is what the Tampa Bay area can expect for the housing market and how to stay ahead of the trends:
Homes in High-Demand
Throughout 2020, the housing market experienced a very successful year as mortgage rates were at an all time low and the demand for housing increased as people relocated in many instances to permanently work from home. Experts are predicting another great year for residential real estate as many buyers delayed their home purchases throughout the pandemic due to a decrease in in-person showings and uncertain levels of income as the job market fluctuated.
Young adults (millennials in particular) were amongst the highest group of buyers, at 38% according to the National Association of Realtors. This group faces its own set of challenges as a large majority fall into the category of “first time buyers”. With an increase in house prices, buyers will be required to provide more money than usual at signing, requiring higher median household incomes. As of July 2020, Tampa Bay homes were ranging just above $270,000 an eight year increase of 98% since 2012. With a limited inventory of houses, first time buyers will face challenges when going up against a buyer with existing home equity.
Leisure is Key
With the continuing “work from home” and virtual school trends many buyers are looking for homes to expand into as more family members share the same space on a daily basis. Having to manage professional calls, and virtual elementary school assignments in a small space can be challenging and many buyers are reaching their breaking points. The demand for single-family homes is incredibly high and is projected to grow by 9% this year.
Buyers will also be searching for homes in areas that provide some much needed space to roam and adventure into. Balance between leisure and virtual work/ school environments will be a huge priority for buyers going forward. Breaking away from the cooped up quarantine blues, homes with access to the outdoors, such as the beach and local parks will be in high demand.
Although housing prices went up throughout the pandemic, a continuation of low interest rates will provide a more affordable experience for home buyers interested in benefiting from low monthly mortgage payments.
Rental prices on the other hand, have been on an upward climb throughout the Tampa Bay Area with landlords increasing their rents by 15%. This sudden increase has put the rental market at risk, as more middle-class renters face income uncertainty and potential employment. This should begin to stabilize as families emerge from the pandemic with new jobs and opportunities in hand.
Ready for Change
The new year is the perfect time to set your sights on your dream goals and aspirations. Setting yourself up in an environment where you can spend quality time with friends and family and escape from the outside world is key to navigating the collective change this year will inevitably bring. Let us help you find your dream home.
Speak with one of our amazing agents to learn how these trends might impact your home’s value and start searching for a new space!