What to Expect in Tampa Bay’s 2022 Real Estate Market

Interest rates were historically low over the past year. We at Tomlin St Cyr Real Estate Services predict that inflation will remain above 5% while interest rates will begin to climb and top 4% by the end of 2022. Those increasing interest rates will price out some first-time homebuyers with higher mortgage payments.

Realtor.com has named Tampa Bay to its Top 10 Housing Markets for 2022. Residents are now able to work remotely and live anywhere they wish. Tampa Bay is a great place to live with beautiful beaches and weather with year-round activities. Many are moving here because of the low cost of living, including no state income tax, good schools, and relatively affordable real estate.

Housing Demand Outlook

We expect to see Canadians migrate to the U.S. as border restrictions ease. South Americans are choosing Florida’s west coast over the pricey Miami area, too. Along with sustained migration to Florida, we predict our real estate market to remain active even with higher interest rates. 

When it comes to home price increases, we foresee a more balanced market, particularly with rebounding interest rates. As a result, homes will be more affordable. However, affordable housing options will remain limited. Rent will continue to be high. And apartments will become smaller with a shared common area.

Homebuying in 2022

With many companies keeping jobs remote, buyers want extra space for a home office or two. Another trend we’ve seen since the beginning of the pandemic is the importance of a yard and room for a pool, a play area for kids, an outdoor kitchen, and entertaining areas to host a dinner party or watch one of our fantastic sports teams play on TV.

We also saw a surge in iBuyers over the last year. With this trend, an iBuyer uses a company to make an instant offer on a home using an algorithm. Zillow recently suffered a $500,000,000 loss on its now-defunct iBuyer division in late 2021. So iBuying has decelerated considerably. We expect iBuying to return eventually with new companies that have a better strategy. This could mean that companies will team up with investors.

Licensed real estate agents will continue to be the gold standard for buyers and sellers on one of the largest investments they will ever make. Nothing can replace experienced Realtors who can appropriately price a home with an in-person analysis backed by research, data, and in-depth knowledge of a home’s neighborhood.

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