T
he Tampa Bay housing market, once a hotbed of activity, is experiencing a significant slowdown. According to Michael Wyckoff, managing broker of Engel & Völkers Madeira Beach, the rapid appreciation in home values has come to an abrupt halt. "People were getting used to making huge profits on their houses in a short period of time," he said. "That's slowing down."

    The data bears this out: preliminary April numbers from Homes.com show that the number of homes sold in the Tampa Bay metro area remained flat year over year, but dropped about 20% since 2022. Counties hit hard by hurricanes saw even greater losses, with sales decreasing by 8% in Hillsborough County and almost 13% in Pinellas.

    Homes are taking longer to sell, with a median time on market of between 70 and 85 days – a far cry from the Covid-19 era when homes sold within 40-50 days. The increased inventory and fewer interested buyers have led to a decrease in prices across Tampa Bay for four consecutive months. The median home price now hovers around $365,000, down almost 3% from this time last year.

    While prices are rising slightly nationwide, Florida's housing market is unique due to the large influx of people who moved here during Covid-19. "The rubber band effect is just a little more apparent here than in other markets," said Michelle Rumore, senior director of market analytics for CoStar. Even with decreasing prices, buyers are being deterred by higher mortgage rates, insurance costs, and economic uncertainty.

    Experts believe that the current market correction will be a slow one, rather than a crash like the 2008 financial crisis. "You had all the builders jumping in when the market was hot," said Lei Wedge, professor of Finance at the University of South Florida's Muma College of Business. "By the time they're done building, we don't have as many people moving to Tampa." This oversupply could give buyers more leverage, with sellers agreeing to cover closing costs and other concessions.