Housing Trends: Softening Real Estate Market in Tampa Bay

Posted on September 23, 2022, by Massey Law Group

Homeowners in Tampa Bay have enjoyed a booming housing market over the last few years. On the other hand, prospective homebuyers looking to move into the Tampa Bay area have faced inflated housing costs, bidding wars, forced inspection waivers, and repeated outbids by cash investors. According to recent trends, Tampa Bay buyers may see a cooldown of the recently red-hot real estate market. However, it’s worth noting that a slowing of the residential real estate market may not result in substantially lower housing prices for the Tampa Bay area for some time.

As stated in The Tampa Bay Times, increased mortgage rates have slightly decreased demand for homes in the area. For example, homes that would have previously received 5-6 above-average offers are now receiving 2-3 offers at list price, increasing inventory for buyers who can afford to purchase despite the increase in financing costs. 

The Tampa Bay Business Journal reports that the nationwide slowing of the housing market has decreased housing prices, with Florida reflecting this trend on a smaller scale. Bay News 9 also reports that Tampa Bay’s recent sellers’ market has begun to turn into a buyers’ market, allowing for fewer offers and more room for negotiation. 

That said, Tampa Bay has not seen, and may not face for some time, a significant decrease in housing prices. The number of people relocating to this area daily buffers residential values to the benefit of local homeowners. According to the Tampa Bay Times, 9,000 more people moved to Tampa than moved away during January and February of 2022. 

With the ever-changing landscape of real estate issues in Florida, it is recommended to consult with a lawyer regarding any questions you might have regarding any real estate transaction. We provide our clients with a wide range of real estate legal services to help navigate the market. 

Keeping an Eye Out for Fraud

As a real estate law firm, MLG has seen an increase in residential real estate fraud, from issues created by unethical investors to the recordation of fraudulent deeds without the owner’s knowledge. For property owners in Florida, as usual, the simplest advice is the best advice, be sure to read every piece of mail that you receive. In several cases, it is a piece of junk mail that alerts property owners to a fraudulent transaction, either attempted or completed. As with any real estate contract, time is of the essence, and the sooner an issue can be addressed, the more straightforward the resolution will likely be.  

Real Estate Purchase Contracts

When you make an offer to purchase a home, you will present a purchase contract that outlines the details, including the buyer’s offer, financing, closing information, inspections, when the contract could be voided, etc. Typically, real estate agents draft these from a template, but a real estate attorney can review the documents to ensure all terms and conditions satisfy legal requirements and are in your best interest. If your real estate transaction is unique or complicated, a real estate attorney should draft a customized contract that is tailored to your specific circumstances.  

Inspections and Repairs

A home inspection performed by a reputable, licensed inspector often uncovers issues with a property that must be addressed prior to closing. Real estate attorneys can assist with negotiations between the buyer and seller regarding repair specifications and costs. A lawyer is also instrumental in analyzing detailed inspection findings and drafting the necessary documents that permit the buyer to withdraw their purchase offer. Additionally, a real estate lawyer can assist buyers with the legal aspects of construction and remodeling projects.  

Titles and Closings

It is almost time to close on your new home — your purchase offer was accepted, and your property passed inspection! But what if there is a snag, such as a lien on the property? A real estate lawyer will research the lien and help the buyers and sellers navigate the process of removing the lien. They will also ensure that the title insurance on the property covers potential title issues that can arise.  

The path to homeownership is often stressful. Having a real estate lawyer in your corner can protect you with a proactive approach and guide your path to the closing table. MLG has skilled real estate lawyers with experience in all aspects of real estate law, from reviewing purchase contracts, researching property titles, and litigating title defects to handling family transfers of property. Learn more by scheduling a consultation today!