Realtor.com forecasts home sales, prices for Tampa-St. Pete in 2020
There likely will be a slight uptick in the number of home sales and in sale prices next year in the Tampa-St. Petersburg-Clearwater metro area.
The number of home sales will grow by about 0.6 percent, while sale prices will be up by about 1.6 percent locally, according to a 2020 forecast from realtor.com.
Nationally, the number of sales is projected to dip by 1.8 percent, while prices will increase by about 0.8 percent, the forecast said.
Inventory is at historic lows and despite some relief from new construction, moderating home prices and relatively low interest rates, first-time buyers will continue to struggle with affordability. Sellers will contend with flattening price growth and slowing activity.
Millennials — generally between 30 and 40 years old — will surpass 50 percent of all home buyers, but baby boomers have little incentive to sell and will continue to hold onto their homes, realtor.com said.
“2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find,” George Ratiu, senior economist at realtor.com, said in a news release.
The forecast also projects mortgage rates will be up to 3.88 percent by year-end 2020, single-family housing starts will be up 6 percent and the home ownership rate nationwide will be 64.6 percent.
While the realtor.com forecast did not look beyond 2020, a separate study by Zillow found that the Tampa-St. Pete metro will be impacted more than any other area in the United States by the coming “silver tsunami,” with about one-third of the boomers expected to release their homes to the market by 2037.
