Tampa Bay housing predictions for 2014

GULF BREEZE, Fla. - Feb. 13, 2014 - PRLog -- As we round out another strong year of economic recovery, Adams Homes remains optimistic and confident in the current direction of the home building market within the Tampa Bay area.  At the beginning of 2013, the housing market was already fully entrenched in a growth cycle and only continued throughout the year.  The historically low inventory of finished homes in Tampa has produced a high demand for housing allowing new-home construction to surge.

Tampa’s economy is expanding at a rate of 3.46%, the second fastest market in Florida just slightly behind Fort Myers.  The strong housing recovery has given way to absorption of distressed properties, reductions in finished lot inventories, new development of raw land, increases in property values, and strong job creation.  According to the National Association of Home Builders / First American Leading Markets Index (LMI), Tampa is operating at 83% of a normal market which is an increase of 10% year-over-year.

As 2013 ended, the inventory of homes on the market in the Tampa Bay area diminished to just over 9,000 units, representing a 4.2 month supply.  Additionally, the demand for housing pushed the average days on market (DOM) to 71, down from 90 in 2013.  The most impressive statistic was the increase in average sale price over the course of the year.  The average sales price of new and existing homes in January 2013 was roughly $168,000 but by the end of the year the average sales price was over $202,000 representing a 20% increase in just one year.

With the potential for rising interest rates and the increases being seen in hard costs, focus must be placed on controlling costs to maintain affordability.  Currently, Tampa ranks 107^th nationally for affordability in housing opportunity.  One aspect that will help counterbalance this issue is the strong employment in the Tampa Bay market.  This past year, 41,700 new jobs were created, pushing the current job base close to the largest level ever.  The unemployment rate in Tampa has shrunk from 8.1% at the end of 2012 to a current rate of 6.3% and a wage growth rate that is stronger than the national average.

Looking forward into 2014, all indicators are pointing to a gradual growth throughout the coming year.  Many economists are predicting a 20% growth in new single-family construction starts, a rate that is just slightly lower than what we experienced in 2013.  To accommodate this coming growth, Adams Homes is currently seeking out prime locations for our next communities and is looking to add to our land portfolio for the next few years.

Adams Homes is currently building single family homes in the booming South Hillsborough County area as well as in our newest community in the up-and-coming subdivision in Pasco County, The Reserve at Meadow Oaks.  With interest rates still low and pricing for new homes still starting in the $140’s, now is a prime time to invest in this upward trending real estate market.

Adams Homes has decorated model homes for viewing throughout the Tampa area.  Explore all the area has to offer by previewing the communities we offer new homes for sale {HERE (http://www.adamshomes.com/florida/tampa)}.