The good news is that the Tampa area ended 2021 as one of the hottest housing markets in the country with average home values skyrocketing nearly 30% by year’s end. And if that was not enough, heading into 2022, Zillow* jettisoned Tampa from the fourth spot to No. 1 on its list of the hottest housing markets in the US listing.
Add this good news to the fact that another round of new residents streaming into the Bay area in 2022 will help drive home prices up again.
What does it all mean for luxury home buyers in Tampa? According to real estate site Redfin*, Tampa lands at No. 21 on the luxury real estate markets in the US list, with $1.2 million as the starting point for a luxury property and a median list price of $320,000. The top listing last year in Tampa was $$22.5 million, listed and sold by Smith & Associates Real Estate.
As for the luxury home market itself, the overall status is well. In its recent “Luxury Market Report*,” the Institute for Luxury Home Marketing says that the demand for luxury homes is outpacing supply. At the end of 2021, there were 55% more luxury homes sales than listings.
Locally in Tampa Bay, Hillsborough County home sales above $5M increased 375% year over year in the number of homes sold. Pinellas County also posted a notable increase at this exclusive price point, with a 41% increase in $5M and above homes sold*.
Driven again by the impacts of COVID in 2021, luxury homes will again be catering to the needs of the extended family. While factors like location, property type and size remained important, high-end home buyers sought out superior homes with large spaces and multiple rooms—qualities that could serve as a shelter from the chaos.
One of the driving factors in 2022 again will be the technological features that define a home. According to the “Luxury Market Report,” the affluent continue to be more savvy in the use of technology, not only in viewing potential properties online, but throughout all aspects of the sale. The report states that 40% of the global affluent buyers polled would now purchase a home without physically visiting it first.
Here’s a look at some of the other trends that will drive the luxury home market in 2022:
Declining inventory levels, combined with a lack of desirable properties, have pushed prices up across all luxury price points. Median luxury sold prices as of the end of October 2021, compared to the full year of 2020, have risen 23% for single-family homes and 14% for attached properties. (Institute for Luxury Home Marketing)
Turnkey properties still are sparking bidding wars and fetching the highest prices. Recent supply constraints in the construction industry (labor shortages in materials like lumber, concrete and paint) are only amplifying the demand for turnkey and newly built properties. (Inman)
Millennials are projected to account for nearly half of all luxury home sellers in the next year, with 80% of them putting their homes up for sale, 31% for the first time.
Retired Gen Xers are another group to watch in the luxury home market, with 21% planning to sell a home.
Homes that were purchased for more than $1 million are projected to account for more than a quarter of North American homes that will be sold in 2021 and 2022.
If you're looking for your next luxury home or condo in the Tampa area, our team of real estate professionals at Smith & Associates Real Estate can help make your dream come true. With more than 52 years in the business, we make it our mission to help every client find their new home. Let us "match" you with one of our team members today.
Call us at 833.917.0676 or click here.
Zillow's Top 10 US housing markets in 2022
- Tampa, Florida
- Jacksonville, Florida
- Raleigh, North Carolina
- San Antonio, Texas
- Charlotte, North Carolina
- Nashville, Tennessee
- Atlanta, Georgia
- Phoenix, Arizona
- Orlando, Florida
- Austin, Texas
*MLS: STELLAR Date: 01/01/2021 - 12/31/2021 Type: Broker Status: Total Sold List + Sell Price: $0 - $999,999,999 Construction Type: All Bedrooms: All Bathrooms: All Property Types: Residential: (1/2 Duplex, Condominium, Mobile Home, Manufactured Home, Condo - Hotel, Multi-Family, Single Family Residence, Townhouse, Villa, Dock-Rackominium, Farm, Quadruplex) Counties: Pinellas, Hillsborough BrokerMetrics® Information not guaranteed. © 2006 - 2021 Terradatum and its suppliers and licensors (http://www.terradatum.com/metrics/licensors).
Posted by Smith & Associates Real Estate