Over the last three years, the greater Tampa Bay area has seen an unprecedented real estate boom. Americans from all over the country have been flocking here due to our fabulous weather, outdoor lifestyle, and [previously] low real estate prices. The work-from-home movement rapidly increased demand for single-family homes, prompting families and rental property investors to scoop up real estate at a pace we’ve never before seen. This, combined with historically low mortgage interest rates, led to a depletion in single-family home inventory in Tampa in early 2022. The seller’s market was on fire … until it wasn’t. Now, in December 2022, homes that would have previously sold in a day or two (over asking and sans inspection) are sitting on the market for weeks or months, prompting owners to consider renting their properties instead. Can’t sell your house? We can rent it for you!
A rapidly shifting market
When selling a home, the first question on an owner’s mind is often: “how much can I get for my house?” Before September 2022 in Tampa, homes were selling so quickly and at such high prices that even owners who hadn’t considered selling were listing their properties. The demand for homes and historically low mortgage rates created a rally effect in the Tampa Bay area - it was a very exciting time for real estate. Investors who had scooped up inventory before the surge were enjoying huge returns on investment through sales and rental rates. Families were securing loans for homes they previously would not have been able to afford.
Cut to mid-September 2022, when the Fed hiked interest rates up over 3% in an effort to curb inflation, and our market rapidly cooled. According to Vintage Real Estate founder Dave Sigler, “we normally see a decrease in demand right after Halloween for both rentals and sales. This year, the drop was earlier and sharper than we’ve seen in a long time.” Housing demand is down but not dead. Adjusting expectations with sales and rental rates is critical at this time.
Interest rates have continued to rise and hit 7% in November 2022, a historically fairly normal rate that suddenly feels astronomical due to the historic lows we’ve experienced in the United States in recent years. To rent and sell real estate, owners must accept the rapidly shifting market for what it is and price accordingly. While it’s difficult to price your property significantly lower than you could have just a few months ago, failing to do so means your property will sit unsold or vacant for longer than necessary, costing you money. Check out our free rental analysis tool to learn what you can get for your rental.
Signs your house isn’t going to sell
If your property is currently on the market in greater Tampa Bay for sale, you’re likely anxiously wondering if and when it’s going to sell and for how much. We’re finding that most properties for sale in Tampa are currently overpriced for the current real estate market, resulting in stagnant listings and rentals. Pay attention to the following signs that your house isn’t likely to sell soon:
Your property has been on the market for over a month
A month on the market was a norm in Tampa pre-pandemic. Now, even though the market is down, there are still many buyers looking for homes. If yours has been listed for over a month, it will likely sit for many more.
You’re not booking many private showings
Open houses bring foot traffic comprised of both real buyers and curious onlookers. A sign your house has real/substantial interest is not just open house attendees but a high number of private showings. If you’re not getting many, it’s not a good sign.
You haven’t received any offers (even low-ball offers)
This one is obvious - if you’re not receiving any offers, even low-ball or unrealistic offers, your home will likely sit.
There are many open houses nearby
Vintage Real Estate founder Dave Sigler states, “when the market was flush, there was no need even to host open houses. Homes were off the market in a day or two.” If there are open houses at all nearby, let alone many every weekend, odds are your property will be sitting for a while.
Concessions on neighboring homes
Right now, we’re seeing a lot more concessions being made in contracts that are successfully closing. If your neighbors sold their house and had to lower the price, buy down the buyer’s rate, offer percentages toward closing costs, and more, you need to be willing to do the same or risk your property sitting stagnant.
In general, many properties on the market throughout Tampa are simply overpriced. Greater Tampa Realtors' September data shows that closed sales are down 36.2% year-over-year, and at the same time, listings are almost double. This indicates a misalignment in pricing expectations - sellers still think they will get summer 2022 prices for their Tampa homes when they aren’t. If you’re vacating your property and aren’t willing to accept a significantly lower price than you would have received just a few months ago, consider renting it out.
Rent your Tampa house instead of selling it
If you’re seeing any of the above signs and are hesitant to sell your property, or if you’ve already tried to sell unsuccessfully, contact Vintage Real Estate to begin a conversation about renting out your home. Our property management solutions are truly turnkey - you don’t need to do much to start renting out your house. We will perform a rental analysis to determine how much you can charge, assess the property and perform any needed repairs with our team, market your property and place a tenant, then subsequently handle and coordinate all activities relating to the tenancy on your behalf. Many of our customers live out of state and can fully trust us to handle their Tampa Bay rentals while enjoying peace of mind and steady rent payments.
Click here to contact us for your free rental analysis and find out what you can rent your home for today.