Home sales and prices are expected to increase in 2025, according to a new report from Zillow. The report states that around 100,000 more homes will be sold in the U.S. next year, with values growing about 2.2%. In Tampa Bay, homes have a median value of $370,924, but unlike the rest of the nation, prices are expected to decrease by 2% in 2025, according to the forecast.
Current Tampa Bay Market Trends
Since October, 14% of listings in the Tampa Bay metro area have sold above market price, with the average home staying on the market for about 36 days.
Mortgage rates started falling in August and then rose when the Federal Reserve began cutting interest rates. According to the report, the average rate for a 30-year fixed mortgage is 6.95% nationwide.
Zillow’s Outlook for 2025
“There’s a strong sense of déjà vu on tap for 2025,” Zillow Chief Economist Skylar Olsen said in a statement. “We are once again expecting mortgage rates to get better gradually, and opportunities for buyers should follow, but be prepared for plenty of bumps on that path.”
The Fed is expected to lower interest rates by a quarter point this week, which may help ease some of the pressure for home buyers.
A Gradual Recovery and Housing Hotspots
Zillow predicts mortgage rates will gradually decline in 2025, leading to a slight recovery in sales and home appreciation. In addition, a separate report from Realtor.com expects Tampa Bay to be the 22nd hottest housing market in the nation next year for year-over-year median sale prices.
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