ARE YOU FEARING A HOUSING BUBBLE? - HERE'S WHAT TAMPA RESIDENTS NEED TO KNOW

By Corrie Forcet, Realtor® | The Forcet Group | KW Suburban Tampa

Economists & experts agree that conditions today do not resemble those of the Great Recession of 2008. But with interest rates and inflation rising and home affordability declining, our local Tampa Bay market will see a shift from the previous two years' activity. What does this mean if you are a homeowner in Tampa Florida? And how should you prepare if you are looking to buy or sell a home in the next 6 to 12 months? Let's break this down:

Buyers

Probably the most affected demographic in the housing market; buyers are anxiously waiting for a bubble to burst to create affordability. While no one can be certain exactly what the future holds, experts agree that the conditions we see today are just not primed for a dramatic market crash. What is most likely is a flatlining of home values. "Waiting out the market" may not work in your favor anytime soon, as interest rates are likely to increase 3-4 more times in 2022, and rental costs remain high. It is still wise to buy vs. rent. Get an expert Realtor to help you with the buying process, as they can skillfully assist you to find a home within your budget. Then, a few years down the road, you can refinance your mortgage when the interest rates readjust.

Sellers

Good news! We are still in a Seller's Market and that will not be changing anytime soon. Inventory remains at an all-time low, so competition over quality homes will continue. However, the days of cash offers flying in $15K over list price, might be behind us. Already, in my real estate practice, I have seen buyers requesting seller concessions; something we haven't encountered in years. It is especially important to list your home at market value to receive reasonable offers in a timely fashion. We also advise that you stay on top of needed updates and renovations in order to maintain the value of the home as it is far less likely that buyers will wave inspections or absorb reno costs.

Homeowners

No doubt your home has gained impressive equity over the past couple of years! While there are no promises that your home value will continue to soar or even remain exactly as-is during this presently shifting economy, you should not fear a plummet in home values in the Tampa Bay area. Our area has become highly sought after and no matter what the economy faces, buyers will always be attracted to Tampa. It would, however, be wise to be prepared in the event that your equity does readjust some. If you are considering tapping into the equity gains of the last two years through a home equity line of credit, talk to a trusted Realtor and lending expert prior to signing on the dotted line.

There is a lot of news out there! Some is quite sensationalized, while other national data reports may not apply to your specific area. Please reach out to me if you have any questions or concerns about your home's value or if you are curious about buying or selling in the near future. I can give you real-time, relevant, reliable data that will help you make the best decision for you and your family.