Market Trends for Summer 2017
The Greater Tampa Bay area started the year positioned for an exciting 2017 real estate market. So far, it has not disappointed. Home prices continue to trend upward, and the spring months lived up to expectations for sales partly thanks to a booming stock market, low interest rates, and a generally positive outlook on jobs and economic growth. Here is a rundown of Florida real estate market trends and tips for the coming months.
Quick Glance at Summer Rates
Entering Florida’s hot summer months, inventory has been tightening in the Tampa-St. Petersburg-Clearwater metro areas. For those considering putting their homes on the market, now is a prime time to stand out.
As for interest rates, they remain rather low this summer as compared to previous decades. Since the quarter-point hike in short-term interest rates in June, the Federal Reserve’s key interest rates have been between 1% and 1.25%. June’s quarter-point increase did not prompt an immediate rise in home mortgage rates, but some economists forecast that fixed 30-year mortgage rates could climb towards 4.5% percent by the end of 2017.
Florida Vacation Homes & Investment Properties
Interestingly, The National Association of Realtors (NAR) reported that as a share of all homebuyers across the U.S., the percentage of investment buyers remained steady at 19% over the past three years, while vacation homebuyers decreased down to 16% of the share of all homebuyers. NAR defined vacation homes as recreational properties purchased primarily for the buyer’s personal use, while investment homes are residential properties purchased primarily to rent to others, or to hold for other financial or investment purposes.
NAR’s 2017 Investment and Vacation Buyer’s Survey listed a 4.2% increase in the median vacation-home price from $192,000 in 2015 up to $200,000 in 2016. With home purchase prices increasing as well as rent prices continuing to increase across our area, this could be the right time to invest. Investors could include boomers wanting a snowbird lifestyle by having a second home in Tampa, or investors could be working adults planning to rent out a vacation property in Clearwater to travelers for now but personally plan to live in the home once retired.
Individual Homebuyers and Home Sellers
Regardless of the market fluctuations or interest rates, we advise our customers to review their unique set of financial and personal circumstances before buying or selling. Personal timing is crucial, which is why we make ourselves available to consult with customers of all ages and budgets regarding the best options available to them, whether that means aligning you with a mortgage consultant or showing you a wide array of single-family houses … including new construction … plus townhouses or condos throughout Central Florida’s Gulf Coast areas.
As full-service real estate professionals, we stay on top of all market trends in order to provide you the best possible home buying and home selling experience. Call Dick and Karla Nielsen today at 813-294-5786 for helpful information and real estate advice about Florida’s current real estate market.
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