Tampa real estate agent John Hudson says the bidding war isn’t as intense as it was a few months ago, but it’s still a competitive market in Tampa Bay.
“Sellers can still take advantage of the valuations we have made over the past two years. We can have 20 or 30 offers,” Hudson said.
The change may be a sign of things to come. Goldman Sachs’ new research report, “The Housing Downturn: Further to Fall,” forecasts a housing slowdown as home sales and prices fall over the next year.
“I think I agree with them,” said Ray Wedge, a professor at the USF Muma College of Business. No,’ he said.
Financial experts say rising interest rates, inflation and high construction costs continue.
“I’ve had some builders just tell me that their construction cost to build a house is about $125, or $130 per square foot, plus the cost of the land,” Wedge said. said.
All of this adds challenges, but the National Association of Realtors says the process is returning to a more normal give-and-take.
“For today’s first-time homebuyers, the demand is lower than we’ve seen at the breakneck pace of the market over the last few years,” said the National Association of Realtors. “I think today’s sellers are probably looking at a historically good market. A lot of the time you’re still in the driver’s seat.”
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So its very high demand is leveling off.
“But we’re still in a great seller’s market, and for buyers, if they’ve been out, I think they can come back into the market,” Hudson said.
The average number of bids for a home is now down to two to three, according to realtors, and that average has more than doubled a few months ago. Affordable housing and the number of available homes remain a problem for the industry, real estate experts said.