TAMPA, Fla. — New data from Zillow revealed that month-to-month home values across the country have grown to their highest rate in a year, impacting the Tampa Bay area.
According to a Zillow report released Monday, the average home value nationwide grew by 1.4% from April to May. That is the highest jump in home values since June 2022.
After a 0.9% change from April to May, Tampa homes were valued at $370,792, according to the Zillow Home Value Index.
In comparison to other Florida cities, Tampa is behind Orlando ($386,090) and Miami ($458,284) in total home value but ahead of Jacksonville ($360,695). Only Miami had a month-to-month increase of over 1%, gaining 1.2%.
The typical home value is $346,856, up 0.9% over last May and up 3.4% from a recent low this January.
The monthly mortgage payment on a newly-purchased average home in Tampa is $1,923, higher than the typical value in the United States, which is just shy of $1,800.
Zillow said high mortgage rates continue to deter homeowners from listing, leading to record lows in inventory.
The flow of new listings was down 23% year over year in May, and Tampa saw an even higher decrease in that same time span at almost 27%.
"Many homeowners are still opting not to sell and give up historically low mortgage rates. But those who do have been rewarded with bidding wars as buyers compete for limited options," said Zillow senior economist Jeff Tucker. "Spring is traditionally the hottest time of year in the housing market, and 2023 has been no exception. Time will tell if seasonal price slowdowns arrive on time this year, later in summer."
But despite these challenges, Zillow said buyers are still motivated as sales figures are close to pre-pandemic standards. According to Zillow, the weeks ahead will reveal if the buying season stretches into summer, as in 2020 and 2021.
