(727) 277-3238
Current Real Estate Market Trends
Market Update: Tampa Bay Region, Pasco, Hernando, Pinellas, Hillsborough and Surrounding Communities
90-Day Sale Trends by County
Looking for insight into the current real estate market trends and statistics across Pasco, Pinellas, Hernando, Manatee, and Hillsborough counties in Florida? You’re in the right place. As a result of the latest data, the real estate landscape in these counties reflects a dynamic mix of opportunities and challenges. Keep track of the latest statistical trends in the Stellar MLS coverage area. See your county trends in the links below:
The real estate market in Pasco, Hernando, Hillsborough, and Pinellas counties in Florida is currently experiencing a period of prices leveling off. The region continues to see a steady increase in population, leading to a higher demand for housing and commercial properties.
Interest Rates
One critical factor driving the growth of the real estate market in 2021-2023 was the low-interest rates. The Federal Reserve kept interest rates at historic lows, making borrowing more affordable for buyers, investors, and developers. This has led to a surge in property demand, especially among first-time homebuyers. However, since the Fed significantly raised the rates, many first-time homebuyers have been priced out of the market, which has leveled off the rapid appreciation in Florida real estate.
How Interest Rates Impact the Real Estate Market
Interest rates can significantly impact the housing market. When interest rates are low, it becomes more affordable for people to borrow money. Lower rates lead to an increase in demand for homes, which can drive up housing prices as buyers compete for limited inventory.
On the other hand, when interest rates are high, borrowing becomes more expensive, and demand for homes may decrease. This decreased demand will lead to a drop in housing prices. Additionally, higher interest rates can make it more difficult for people to get approved for mortgages. This, of course, also leads to further decreased demand for homes. Overall, interest rates play a critical role in the housing market and significantly impact both buyers and sellers.
Why The Fed Raises Interest Rates
The Federal Reserve, the “Fed,” raises interest rates to control inflation and promote economic stability. When the economy grows too rapidly and inflation rises, the Fed may raise interest rates to slow economic growth and stabilize prices. Higher interest rates make borrowing more expensive, slowing down spending and investment. This can help to prevent the economy from overheating and potentially causing a recession. Conversely, when the economy is sluggish and inflation is low, the Fed may lower interest rates to encourage borrowing and spending, stimulating economic growth.
The Fed tries to balance promoting economic growth while keeping inflation in check. Adjusting interest rates is one of the tools it uses to achieve this goal. For current interest rates, see bankrate.com
Employment Effect on Real Estate Values
According to the Florida Department of Economic Opportunity, the state’s employment is projected to grow steadily over the next few years, with a focus on several key industries. By 2024, jobs in Florida are expected to reach 10.2 million, an increase of approximately 1.6 million jobs from 2019.
Growing Industries
One of the key industries expected to drive employment growth is healthcare. The aging population in Florida continues to create a higher demand for healthcare services, increasing job opportunities in the sector. Other industries expected to see significant job growth include professional and business services, construction and trade, transportation, and utilities.
Florida Continues to Grow
The construction industry is definitely expected to continue seeing growth in Florida, given the high demand for new homes from the thousands of people moving to the state. As a result, there has been an increase in construction projects across Florida. According to projections, from 2019 to 2024, the construction industry is expected to add approximately 118,000 jobs in Florida.
Additionally, the trade, transportation, and utilities sector are expected to add approximately 234,000 jobs by 2024. This sector includes jobs in retail trade, transportation and warehousing, and utilities, among others. Overall, Florida’s employment outlook for 2024 is positive, with a focus on several key industries. The state’s diverse economy and job opportunities make it an attractive destination for job seekers and businesses alike.
Whether you’re buying, selling, or investing, stay informed of evolving trends. Understanding the current conditions is key to making sound decisions in today’s competitive market.
Contact John Now!
Need to sell? Contact local realtor John Keller today at (727) 277-3238 or use the form below.