Report: Tampa Bay has nation’s third fastest growing housing market

Article From: http://www.tampabay.com/

By Times Staff

Tampa Bay has the third fastest appreciating housing market in the country, part of a Southern real estate resurgence, according to home market tracker Zillow.

Zillow estimated the average home value in the bay area at $181,200, up 11.9 percent from a year ago. That trails only Nashville and Portland among the 40 largest housing markets measured in the index released Thursday morning.
The news dovetails with the Florida Realtors report Wednesday that showed prices for single-family homes in Tampa Bay jumped 11.4 percent in January, far higher than the statewide average and the highest of any major Florida metro.

Zillow found that California markets have slowed significantly, while some non-traditional Southern markets are starting to shine. Orlando and Miami also rank among the 10 fastest-appreciating markets.

In contrast, San Francisco and San Jose a year ago were among the top 10 markets with fastest growing home values; today, they’re among the slowest.

Zillow tied the California slowdown to the rising cost of living on the West Coast, with home shoppers struggling to find affordable options.

“We spend a lot of time focusing on the West Coast, but powerhouse markets exist throughout the country,” Zillow chief economist Svenja Gudell said in a statement. “Florida and Texas home values have grown quite a bit over the past several years, stealing the spotlight from slower moving markets like San Francisco, San Jose and Los Angeles.”

Overall, Zillow said, U.S. home values rose 7.2 percent over the past year to $195,300 in January, less than one percent shy of peak value hit in April 2007.

Among other findings:

• Rents rose 1.4 percent over the past year to $1,404 per month, according to the Zillow rent index.

• There are 3 percent fewer homes to choose from than a year ago, with Minneapolis and Detroit reporting the biggest drop in inventory.