Rise in interest rates affecting Tampa housing market

TAMPA, Fla. - Homes for sale are staying on the market for an average of 23 days longer than this time last year, according to Greater Tampa Realtors.

Experts say it’s likely because of the 7.2% interest rate.

"I think that those houses that are underneath the average price, I think they stay on the market a little bit longer, and I think the interest rates have a lot to do with that," said Ron Thompson, a realtor with Parks Realty Group.

The median sale price for a home in Tampa last month was $410,000, according to Redfin.

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Thompson says he’s noticing an interesting trend in Tampa Bay’s housing market.

Where average-priced homes are staying on the market longer, and more expensive homes exceeding a half-million dollars are on the front lines of bidding wars.

A Tampa home waiting for new owners 

"It’s strange to me, and just recently, I listed two homes, and they’re both over $500,000. I think 575 is the smaller of the two, and so much activity on those two houses in one weekend. We’re under contract so quickly," Thompson said.

It all comes down to purchasing power.

"I think people that have money, have cash or can put more of a down payment down, are able to put that money down and still manage the loan that they have with a higher interest rate," said Thompson.

Realtors say there’s an important lesson for buyers and sellers right now, as many anticipate what changes will happen with interest rates.

"If interest rates do continue to climb, then you’ll be happy that you secured a mortgage at this current interest rate, but if they do drop next year, you can refinance," said Thompson.