Tampa Housing Market Update: A Buyer’s Advantage, But Sellers Still Profit

The Tampa Bay housing market is starting to cool, which could mean new opportunities for buyers. Recently, the area dropped 19 spots on Zillow’s list of hottest housing markets as inventory is on the rise, and more homes are selling below their asking prices.

This year is shaping up to be one of price correction, following a long period where Tampa Bay was a seller’s market. Now, with more homes available than buyers, sellers are facing more competition and need to be more realistic with their pricing. This shift is great news for those looking to buy, as there are more options and potential bargains to be found.

One key trend I’m seeing is the rise of seller concessions, where sellers are offering to help buyers with rate buydowns to make their properties more appealing. This can be especially beneficial for buyers concerned about higher interest rates. In some cases, savvy sellers who partner with well-connected agents can leverage their agent's lender relationships to secure a rate buydown for buyers, at no cost to the seller, typically a 1% reduction, if the buyer uses a preferred lender. This kind of incentive can make a significant difference in affordability and help sellers stand out in a competitive market.

Of course, it’s not all bad news for sellers. Many homeowners still have substantial equity in their properties, thanks to the significant price growth over the past few years. Even with some price adjustments, most sellers will still walk away with a substantial profit, making it a good time to cash in on the equity they’ve built.

One question I often hear is whether it’s better to wait for interest rates to drop before buying. While it’s understandable to want the lowest rate, the reality is that predicting rate changes is nearly impossible. Instead of waiting for the perfect moment, it may make sense to buy now while competition is lower. When rates eventually drop, refinancing can be an option to secure a better rate later on.

It’s also important to explore the various financing options available, especially if you’re a first-time homebuyer. There are programs offering low or no down payment requirements, including FHA and VA loans, which can make purchasing a home more accessible.

If you’ve been considering buying a home in Tampa Bay, now might be the perfect time to start your search. With the market correcting, more options available, and sellers increasingly offering incentives, taking advantage of the current conditions could put you in a great position.