TAMPA, Fla. — In 2022, we saw some of the highest housing prices and turnover in sales that we’ve ever seen.
Since then, the housing market has struggled to regain equilibrium.
“We’re just feeling the pains of inflation from two years ago not totally being shaken off yet,” said Tiffany Michael, Tampa Bay real estate agent with Century 21 Circle.
She told ABC Action News that in 2024, there was some stabilization.
Listings were on the market a bit longer than they had been, and inventory was up because people were more hesitant to buy in 2024 compared to the previous year.
Many people were waiting to see if The Fed would drop interest rates.
“It didn’t quite happen, and that’s because the GDP is incredibly healthy right now, and it’s up. Which, I know we love to see that all of our retirement accounts are doing wonderful. But that just means that there hasn't been a high inclination for The Fed to lower those rates. If we did that, it would cause another spike in the market, which we really want to avoid,” said Michael.
“Buyers, they were a little bit reluctant just because they kept being promised that interest rates were coming down. I think we’re coming to just more of a realistic mindset about that,” she added.
Now, in 2025, rate cuts are expected to slow over the course of the year.
“We think that the buyer is going to pick up, the buyer numbers, the buyer close sales, are going to pick up a bit because we’re going to kind of lose that infatuation with hawk eyeing the interest rates dropping,” said Michael.
With mortgage rates still pretty high, experts predict a rise in home prices but at a much slower rate.
“I think this is going to be the year that it’s going to feel a lot more comfortable,” said Michael.
Overall, she believes the housing market will likely stay pretty stable this year, which could make it a better opportunity for people looking to buy or sell.
“Right now, you have less competition, and pricing is really stable,” said Michael.
She stresses, though, that if you’re in the market, preparation is key.
If you’re a buyer, get your pre-approval so you’re ready to go.
If you’re a seller, she recommends taking a few steps to get ahead of the game.
“Get a pre-home inspection, check everything out, see what may need to be repaired, and go ahead and get that knocked out. Then you could also work on staging, figuring out how to kind of redesign or rework some rooms,” said Michael.
