Tampa continues to rank among the top real estate markets in the U.S., and was ranked #18 by Realtor.com in their list of top markets for January 2017.
Although this ranking is not focused on real estate investors, it’s important to have a vibrant real estate market for investors to generate cash flow profits. Tampa’s ranking in the top 20 real estate markets, therefore, is more good news for Tampa Bay real estate investors.
Perhaps best of all for Tampa homebuyers and property investors, data shows that the local real estate market is not overheated, and is poised to continue as one of the best markets for homebuyers and real estate investors alike.
So in this article, we want to share Realtor.com’s top 20 list, as well as their 2017 housing forecast.
U.S. Real Estate Market
The Realtor.com January 2017 report shows that the overall U.S. real estate market is very strong, with tightening demand and rising prices.
During winter months, the real estate market typically experiences a lull, but 2017 is different with a shortage of homes on the market. The demand for homes is outpacing supply as we start 2017, resulting in homes selling at a 4% faster rate than this time last year.
“We saw evidence of a stronger-than-normal off-season starting last September and October due to pent-up demand and surging interest from first-time buyers,” Jonathan Smoke said, Chief Economist of Realtor.com. “The downside to this strong off-season is that we have started 2017 with a new low volume of available homes for sale and a new high for prices.”
Though the median price of homes is typically the lowest in winter, the current median home price is 10% higher than last year, and there has been an 11% drop in available homes since this time last year.
So, what’s driving this?
As mortgage rates continue to rise following the Presidential election, and the Fed expects to raise rates three times in 2017, buyers are purchasing homes while rates are still historically low. Furthermore, homebuyers do not want to be priced out of their dream home with higher interest rates, so they feel that it is a good time to buy.
Top 20 U.S. Real Estate Markets
Realtor.com’s list of top 20 U.S. real estate markets for January 2017 was dominated by California that had 12 of the top markets. Colorado had 2 cities on the top 20 list. And Florida, Texas, Ohio, Tennessee, Michigan, and Indiana each had 1 city on the list.
Here is Realtor.com’s list of top 20 real estate markets for January 2017:
- San Francisco, CA
- San Jose, CA
- Vallejo, CA
- Dallas, TX
- San Diego, CA
- Sacramento, CA
- Yuba City, CA
- Denver, CO
- Stockton, CA
- Fresno, CA
- Oxnard, CA
- Columbus, OH
- Colorado Springs, CO
- Nashville, TN
- Detroit, MI
- Modesto, CA
- Los Angeles, CA
- Tampa, FL
- Santa Rosa, CA
- Fort Wayne, IN
2017 Housing Forecast
Realtor.com’s 2017 U.S. Housing Forecast is helpful for real estate investors, and everyone interested in real estate for 2017.
As an overall trend, there are certain things we can expect to see this year. Among them are:
- Active Millennials and Baby Boomers: We expect millennials and baby boomers to be the most important demographic for home purchases. Since baby boomers have more purchasing power, we expect them to have more success in closing deals.
- Continued Midwest Popularity: Millennials are expected to purchase more homes in Midwest real estate markets than other more expensive markets, because the most affordable cities are in the Midwest.
- Slower Price Appreciation: Homes prices appreciated an estimated 4.9% in 2016, and are expected to slow to around 3.9% in 2017.
- Fewer Homes Available, and Faster Moving Markets: As mentioned above, the supply for homes is expected to decrease in 2017, resulting in faster moving markets.
- Higher Prices and Sales in Western Cities: Expect to see increased value in properties in western cities. The current forecast is that prices in western metros will increase 5.8%, and sales will increase 4.7%.
Tampa Bay Real Estate Investors
Tampa real estate values have increased significantly the last 12 months, and should experience moderate increases during the upcoming year, which is a perfect scenario for real estate investors.
According to Zillow, Tampa’s median home values were up 14.7% over the last year, and are expected to moderately rise 5.1% within the next year.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group wholesaling properties in metro Tampa Bay. We serve clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.