The Tampa Bay real estate market, along with the broader US real estate landscape, is experiencing a significant shift as more homes cross the million-dollar threshold. Current data indicates that 2 out of every 25 US homes, including those in Tampa Bay, are now valued at a minimum of $1 million, marking an increase in the proportion of seven-figure homes.
This growth in the Tampa Bay real estate market and beyond can be attributed to various factors. A supply shortage is pushing numerous listings over the million-dollar mark. Furthermore, the median U.S. home-sale price rose by 3% in July, and luxury home prices saw a year-on-year increase of 4.6% to $1.2 million in Q2. This trend has effectively doubled the share of homes worth seven figures since before the pandemic.
Although the distribution of million-dollar homes varies across the country, the Tampa Bay real estate market is reflective of these national trends. East Coast metros, including Tampa Bay, are gaining the most $1 million-plus homes. In contrast, areas like parts of Texas and the Rust Belt have a negligible presence of million-dollar homes.
The Bridgeport, CT metro area stands out with over one-quarter of its homes valued at least $1 million. In terms of yearly growth, 55 of the 99 most populous U.S. metros, including Tampa Bay, have seen an increase in the portion of homes worth $1 million or more.
However, not all expensive coastal metros are experiencing growth. Some, in fact, are witnessing a decline in the number of million-dollar homes, with California being a prime example.
The implications of these trends on the Tampa Bay real estate market and the wider US market were discussed in depth at the Women in Real Estate Conference, District Conferences, and NAR Events. They were also featured in publications like the Florida Realtor Magazine, Florida Realtors News, and the Legal Newsletter.
In conclusion, the surge in the number of million-dollar homes in the Tampa Bay real estate market and across the US is a transformational trend. The industry must adapt to these changes and formulate strategies to cater to this evolving market segment.