Tampa Housing Market Shifts: From Seller’s Advantage to Buyer’s Opportunity

Tampa Housing Market Shifts: From Seller’s Paradise to Buyer’s Haven

TAMPA, Fla. — The once-booming Tampa housing market is showing signs of cooling, as a recent Redfin study indicates a significant shift from a seller’s market to a buyer’s market. This change was starkly illustrated when ABC Action News’ Annette Gutierrez visited several open houses on a Sunday afternoon, only to find a surprising lack of buyers.

Realtor Amrita Ramassar, who hosted an open house, noted a stark decline in foot traffic. "The first week I did it, I probably had a total of like, five people," she said. "This weekend is my second open house for it, and I had maybe a total of seven—about four or five yesterday, and then two today."

The shift is palpable. Ramassar listed a property in East Tampa for around $500,000 a month ago but has seen no offers. In a bid to attract buyers, she recently reduced the price by $25,000. "It’s a bit frustrating because this is an investment property for us as well," she admitted. "So I’m kind of like, do I drop it again? Do I wait a little bit more?"

According to the Redfin study, Tampa ranks as the sixth hottest buyer’s market in the nation, with nearly 500,000 more sellers than buyers across the country—an increase of about 34%. Notably, all six of Florida’s major metropolitan areas made the top 10, with Miami leading as the hottest buyer’s market.

Realtor Chandler Thompson, who has been in the industry for nearly a decade, explained the factors contributing to this shift. "Big metropolitan areas, especially Tampa, Miami, and Orlando, aren’t cheap anymore," he said. "Insurance is absolutely through the roof."

Thompson pointed to the aftermath of recent hurricanes as a significant deterrent for potential buyers. "After our most recent hurricane season, especially in Tampa, when we got hit by two hurricanes in a row that caused significant devastation, I think a lot of people are second-guessing where we’re at," he noted.

As the market dynamics change, Thompson believes sellers are facing a reality check. "They still think they can get those COVID prices, and that’s just not the case anymore," he said. With rising interest rates, buyers are finding it increasingly difficult to afford homes at previous price points. However, this has also granted them more negotiating power than they’ve had in years.

"Houses are starting to sit on the market a lot longer," Thompson explained. "Ultimately, everything has shifted in the buyer’s favor because of that. While they can’t afford as much as they used to, they can now probably have more negotiating power than they ever have in the past four or five years."

Despite the current buyer’s market, experts caution that it may take time for housing prices to adjust downward. As the landscape continues to evolve, both buyers and sellers will need to navigate this new reality carefully.

As Tampa’s housing market cools, many are left wondering what the future holds for this vibrant city. For now, buyers may find themselves in the driver’s seat, but the road ahead remains uncertain.