Tampa Bay home prices drop as national market cooling continues

The Tampa Bay housing market is experiencing a slight cooldown, with several neighborhoods seeing notable declines in home prices, reflecting broader national trends. 

According to recent Redfin data, Tampa Bay saw the biggest decline in home prices year over year, declining by 6%.

Nationally, home prices were up 5.1% on a year-over-year basis — the slowest pace since August 2023.

Redfin Senior Economist Sheharyar Bokhari noted that while home prices continue to rise, year-over-year growth has been slowing for the past 10 months.

“As we enter the spring homebuying season, there’s promising news for both buyers and sellers,” said Bokhari in a statement. “The recent dip in mortgage rates and the moderation in price growth are drawing more buyers back into the market, which is an encouraging sign for those looking to sell.”

Downtown Tampa has been among the hardest-hit areas, with the median sale price dropping 25.2% year-over-year in February to $423,000. Homes in the area are lingering longer on the market, with an average of 41 days, compared to 76 days in the previous year. Similarly, Port Tampa City has seen a 24.3% decline, bringing its median price to $514,000.

In New Tampa, prices have fallen 8.5% year-over-year to a median of $448,000, with homes staying on the market an average of 67 days, compared to 40 days last year.

Despite these declines, some Tampa neighborhoods are still seeing appreciation. North Tampa, for example, reported a 6.6% increase, pushing median home prices to $306,000. Homes are selling faster, averaging 31 days on the market compared to 83 days in 2024.

The price drops in Tampa Bay mirror broader national trends. Across the U.S., the housing market is experiencing a slowdown as the Federal Reserve continues its cautious approach to interest rates. 

Mortgage rates remain elevated, hovering around 7%, discouraging potential buyers. Additionally, an increase in housing inventory in certain metro areas has led to greater competition among sellers, pushing prices downward.

According to Redfin’s latest housing market report, home prices have fallen in 30 of the 50 largest U.S. metros, with regions that saw rapid appreciation during the pandemic now leading the decline. Markets in Phoenix, Austin, Texas and Boise, Idaho — all previously considered pandemic boomtowns — are seeing double-digit price declines as demand slows.

Despite price corrections in many markets, housing affordability remains a challenge. Wage growth has not kept pace with previous price surges, and homeownership remains out of reach for many first-time buyers.

Find the full Redfin report here.