T
he Tampa Bay real estate market is expected to see a slight decrease in home prices next year, according to Zillow's recent report. While the national housing appreciation rate is forecasted to increase, Tampa is predicted to experience a 2% drop.

    This prediction contradicts local realtor Sunny Alexander's optimism about the market's future. She believes that with demand still present and interest rates stabilizing, Tampa will see healthy growth in home values, around 3-5% per year. However, she notes that price drops may occur further from downtown areas where new construction is prevalent due to high supply.

    In contrast, neighborhoods like Seminole Heights or South Tampa are expected to continue seeing rising home values due to the scarcity of land and its associated costs. Alexander attributes the market's previous rapid growth to unsustainable levels, saying "those days are gone."

    A recent RE/MAX study found that homes in November sold faster than in October, with a decrease in sales time by about 8%. This suggests that while prices may drop slightly, the market remains active and attractive for buyers.