Is 2024 the time to buy a home in the Tampa area?

TAMPA, Fla. - The National Association of Realtors predicts 2023 will stack up as one of the worst years for home sales in over a decade. But things are certainly looking up.

Bay Area realtors like Tomlin St. Cyr's Noah Rich foresee lower interest rates and some more inventory in 2024, which he says is getting buyers excited.

With inflation cooling, the Federal Reserve has signaled it could cut interest rates three times this year, making it cheaper to borrow money for a new mortgage. 

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After climbing to nearly 8% in October, analysts forecast rates could potentially fall below 6% by the end of the year.

Rich says seeing rates soften already is pulling buyers back into the market.

However, while interest rates are going down, the price of living in Tampa is still projected to stay high. 

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"We're still having a large influx of people to Tampa from out of state," Rich explained. "So I think that's really what's going to keep our pricing stable. And over this next year, I really think we're going to have about a 4 to 5% rise in the market. But we will still have a rise just because there is a shortage of inventory. There are more people moving to Tampa because it's a great place to live."

Rich says as far as clientele goes, he's also seeing lower interest rates open up housing options for younger buyers in their twenties and mid-thirties looking for their first home and trying to take advantage of buy-down programs.

"There's a lot of first-time homebuyer programs that are available," Rich said. "Find out what is available because there will be free money toward your down payment," said Rich.

In terms of "hot spots" for home buyers in Tampa, Rich says factors like the schools in South Tampa are continuing to drive people to that neighborhood.

But, as the region continues to develop, experts project rural areas in places like Pasco and Polk counties, where you can often get more land for your money, will be favorable in 2024.