Tampa Housing Market and US Housing Market

6 Replies

Hey 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?

Tampa'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.

The 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!

The 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. 

Welcome 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.

Sunita Maharaj, Real Estate Agent in Florida (#RE SL3356253) and Florida (# NMLS 1656694)

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