Tampa Housing Market and US Housing Market
6 Replies
Morgan Ashford from Tampa, Florida
posted 6 months agoHey Tampa,
I'm looking to purchase my first home here in the spring. I'm primarily looking at multis in the Tampa/St. Pete area. I've been spending what seems like every waking minute researching the market, US market, home trends in the area, and properties. But I'd like to get your opinion on the market here and the overall market as a whole. Do you think these prices are sustainable, going to continue to rise/drop, and does anyone foresee a bubble that, if burst, could ripple into our backyard?
Edward Liu from Palo Alto, California
replied 6 months agoTampa's a great market, I've just started buying in the area as well. using 50% rule, cap rates are 5.5-7% for grade B neighborhoods, and 8%+ for C or below.
I think it's relatively safe, since rent hasn't risen too much, so even if the price crashes, you're not going to be wiped out.
Price is pretty darn high now, considering the job market there, that's my feeling, but since cap rate is still good, that just means it was probably a little bit undervalued before.
Rob Beardsley Investor from Atherton, California
replied 6 months agoTampa is rated in the top 10 for high yield markets so thats great! However, you have to do your homework on a market like this because there is more risk. Sounds like you are already doing a great job researching so keep it up and you'll find the best neighborhood and a great opportunity. Good luck!
Kim Meredith Hampton Real Estate Agent from Orlando, Florida
replied 6 months agoMorgan,
Tampa/St Pete is a great market. The properties do move fast, but as Edward eluded too, some of the cap rates are not what they are in other markets. The Tampa/St Pete area is stable and continues to gain appreciation at a healthy rate.
Matt Carey Real Estate Agent from Brandon, Florida
replied 6 months agoThe areas that have duplexes need to be explored before you jump into one. It's a great idea and makes financial sense until you see the neighborhoods. I am currently closing on a triplex with someone I met here and it took awhile, but we found one!
Jason Brown from Riverview, Florida
replied 6 months agoThe market here is booming and everyone is saying the same thing. It's a great market! Now is the time to get in!
Rent throughout the Tampa Bay Area is shooting through the roof right now. It's increasing far quicker than income and jobs are. Also prices are going up past '07 levels.
It's always a good time to invest in real estate. Just don't invest for appreciation. Structure safe payments that are low enough to rent a property out safely even when something goes wrong. If you're flipping, make sure there is a great margin. Not this $10k net profit deals floating around at the local REIAs.
Will there be a bubble? Maybe but nowhere near '08. There will absolutely be a correction next year however.
By the way, since you are looking to buy your own residence, I think the deciding factor should be if mortgage payments will be lower than rent.
Good luck.
Sunita Maharaj Real Estate Agent from St Petersburg, Tampa, FL
replied 6 months agoWelcome to the Tampa/St Petersburg area, @Morgan Ashford . As everyone seems to already know that Tampa and St Pete are a great area to get into at this time. It is in the top 10 list of areas to invest in.
It's wonderful that you are doing your research on the area prior because they do go fast and being a specialist in this area for fix and flips and rentals, I am confident that you will find success.
Good luck to you.
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