2020 Tampa Area Real Estate Trends What You Need To Know Now

Dated: 01/28/2020

Views: 253


2020 Tampa Area Real Estate Trends:
What You Need to Know Now


Talk about knocking your socks off!  2019 was quite the year for the U.S. housing market overall with Median home prices going all the way up to $316,000—a record high! Will 2020 bring more of the same trends? How will the housing market shake out in the current economic climate?


Whether you’re investing, buying, selling or staying put, here are the 2020 Tampa Bay area real estate trends and business movements you need to know about! As you know, Tampa is located on the west coast of Florida and it is a densely populated metropolitan area, second only to Miami, with a population of more than three million people. With that being said, the housing market here is moving at a furious pace and that includes major surrounding cities in the Tampa area such as Largo, Clearwater, St. Petersburg, New Port Richey, Holiday, and Tampa.  Currently, the Tampa Bay area's local economy is worth over $130 billion (That’s right, Billion with a “B” ) and the metro area is the third fasted growing city in Florida!

With the influx of people from northern states fleeing tax heavy states in record numbers and continued job growth, the Tampa housing market is extremely competitive with homes around Tampa selling in about 32 days. The average sale price of a home in the Greater Tampa Bay area was $250K last month, up 8.7% since last year. The average sale price per square foot in Tampa is $154, up 4.8% since last year. Hot homes on the market get extra attention and can sell for around list price with most going pending and under contract in around 8 days. Average homes around the area usually sell for about 3% below list price and go pending in around 32 days.

So, why is the Tampa Bay Area market so hot? Well, aside from the amazing weather, beaches, fishing and sports… Tampa has a very strong local economy with a vigorous focus on job growth in areas such as STEM (science, technology, engineering, and mathematics), financial services, and healthcare. The Greater Tampa Bay Area is consistently ranked among the top 20 fastest growing metro areas in the country and with billions of dollars of residential, commercial, and infrastructure investments underway, it is one of the biggest driving forces of Florida's economy. In 2019 alone, the Metro Tampa Area added 34,300 new jobs to the community giving it the fastest growth in the state of Florida and one of the fastest in the country. Couple all of that with some great tax benefits such as: 


NO corporate income tax on limited partnerships
NO corporate income tax on subchapter S-corporations
NO state personal income tax guaranteed by constitutional provision
NO corporate franchise tax on capital stock
NO state-level property tax assessed
NO property tax on business inventories
NO property tax on goods-in-transit for up to 180 days
NO sales and use tax on goods manufactured or produced in Florida for export outside the state

NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
NO sales/use tax on co-generation of electricity

… in addition to Florida’s other business advantages and excellent quality of life, this creates an unbeatable value proposition for both business owners and employees alike. Additionally, Florida is one of only seven states that doesn't collect an individual income tax. The other six are Alaska, Nevada, South Dakota, Texas, Washington, and Wyoming. Moving to Florida from a state like New York can save someone in a high-income tax bracket, many thousands of dollars in taxes.

Because of these aforementioned business benefits, more than 19 firms, with annual revenues of more than $1 billion, are headquartered here and Tampa is home to four Fortune 500 companies. Furthermore, Tampa has a very diverse economy with financial services, STEM, health care, research, education, tourism/retirement, and military bases all making significant contributions to jobs and growth throughout the area.


Florida is Home to Top Wealth Strategists... Florida is such an attractive state for the wealthy to call home that it's also home to many top wealth strategists, tax advisors, and estate planning attorneys. These advisors are creative and proactive in assisting their clients with growing wealth, minimizing taxes, avoiding probate, keeping clients' final wishes private, and creating an ongoing legacy. 

 


So, Should You Become a Florida Resident? Becoming a Florida resident is not difficult or complicated. It's just a matter of taking some basic steps. The most difficult part will be cutting ties to your former state of residence to convince that state's revenue department that you're no longer living there and therefore can't be taxed there.It is particularly important for someone who continues to maintain a home or a business in another state while residing in Florida.

  


On a more personal note, my investor friend, John McDermott, The General Counsel for The National Apartment Association, is currently working with me on his second multi-family income property purchase, and my last buyer realized 20% in instant equity based on the deal I helped them to negotiate. I also have the pleasure of currently working with a fellow Veteran who's purchasing his first income property, a duplex that he plans on moving into...he'll live in one side and rent the other. I'm thrilled that I can help him build his net worth through some income generating properties. 

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Regarding John's targeted acquisition property, it was originally listed at $790,000 with a 6.76%, the cap rate, after negotiating down to the sale price of $745,000, the new cap rate raised to 7.16%. Additionally, we negotiated all seller repairs and the property appraised above sale price. With a slight increase in rent, John added even more to his bottom line.

"Working with Cassandra has been a pleasure. Very responsive and professional. Always follows through on details and I'm very happy with my investment property purchase experience."

John McDermott
General Counsel
National Apartment Association
Arlington, Virginia

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I would love to work with you on your property goals, please don't hesitate to contact me today!

Cassandra Eckert
REALTOR / USN Veteran
Cell: 352.232.9107
Website: https://cassandra.tampahousehunt.com
Mobile App: https://cassandra.tampahousehunt.com/app.php
Josh Hanoud Team - Tropic Shores Realty
8046 Old County Rd 54
New Port Richey, Florida 34652

Email: Cassandra@JoshHanoud.com
https://www.linkedin.com/in/cassandraeckert/
https://www.facebook.com/cassandra.eckert

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Cassandra Eckert

Cassandra has a vast number of years experience in nearly every aspect of the Public Relations Industry and has brought that experience to her career in Real Estate. Cassandra has no limits to the buy....

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