TAMPA, Fla. (WFLA) — In a Zillow report on how home prices changed from June to July, four Florida cities had price increases. The real estate company examined the 50 largest metro areas in the U.S., and 30 cities had their housing values decrease from June to July. None of them were in Florida. Tampa was among those included, all of which had price increases.
Compared to other cities that had price increases for homes, Tampa had the biggest increase among Florida’s included areas, and was the fifth largest increase of the 20 metros. Prices in the Tampa metro rose 0.6%. Jacksonville and Orlando both had 0.5% increases.
Miami had the largest housing price increases on the list, with 1.5% higher costs to buy a home from June to July.
Nationally, prices fell just 0.1%. The current average reported home value from Zillow was $357,107 for the month of July. In Tampa, prices to buy a home are averaged at $389,519 according to the company. Sarasota home prices dropped 0.7% from June to July but are still more than $500,000.
Alongside price increases for homes in Florida, the national mortgage rate for 30-year fixed rate mortgages rose compared to the week before. According to Freddie Mac, a federally-backed mortgage company which tracks the national rate, the new mortgage rate is 5.55%. The week before, the rate was 5.13%, showing a 0.42% increase from Aug. 18 to Aug. 25.
Freddie Mac Chief Economist Sam Khater, the higher mortgages and economic slowdown is hitting the housing market.
“Home sales continue to decline, prices are moderating, and consumer confidence is low,” Khater said. “But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.”
In Freddie Mac’s latest monthly report on mortgage volumes, the company said their portfolio increased 2.5% in July. Single-family home refinance loan purchases reached $8 billion, or 20% of all single-family mortgage purchases in the U.S. The company reported July had a $1.6 billion decrease of unpaid principle balances for mortgage-related investments.
Examining the housing market, Zillow said the decrease in home values across the U.S. was the first decline since 2012. While 30 of the metro areas had price decreases in July, costs are still up 16% compared to 2021. Part of it is due to an increase of inventory, “driven by homes lingering on the market and new listings trailing pre-pandemic levels.”
Rent price growth is reportedly slowing down, but still “much higher than pre-pandemic levels.” Economic concerns also remain a factor for the housing market as inflation progresses.
“The current slowdown is prompted by the collision of extreme price growth during the early- and mid-pandemic with the sudden increase in mortgage rates since December – a combination that swiftly weakened would-be homebuyers’ ability to afford or qualify to purchase their next house,” Zillow reported.
Higher home values and higher mortgage rates are “pushing” buyers out of the market, according to Zillow. They said that shoppers now “suddenly face a much less competitive market,” which is giving them more time to find the homes they want to move to and gives them more options before buying. Longer times for homes staying listed is also causing sellers to cut prices down, Zillow said.
Tampa home inventory increased a reported 11.7% from June to July, with 13,970 homes available on the market. Zillow reported almost a quarter of the homes for sale in Tampa had price cuts.