How’s the Market? The Question Every Realtor Hears—Answered with February 2025 Tampa Bay Real Estate Trends

The real estate market is constantly evolving, and one of the most common questions we hear is, “What’s happening in the housing market right now?” While no one can predict the future with absolute certainty, analyzing the latest data can provide valuable insights. Here’s a look at the key Tampa Bay housing market trends for February 2025 and what they mean for buyers and sellers.

Home Prices by Property Size – A Mixed Market

Recent data shows that home prices are shifting depending on property size. According to Realtor.com, smaller homes have seen a dip in value:

• One-bedroom homes fell by 4.8%
• Two-bedroom homes decreased by 0.6%

On the other hand, larger homes are in demand, leading to price increases:

• Three-bedroom homes rose by 3.1%
• Four-bedroom homes increased by 3.3%
• Five-bedroom homes surged by an impressive 7.9% year-over-year

Housing Inventory on the Rise

If you’re looking to buy a home in Tampa Bay, there are more options now than in previous months. Redfin reports a notable increase in available properties across different home sizes:

• One-bedroom homes: +10.3% increase in inventory
• Two-bedroom homes: +10.3%
• Three-bedroom homes: +5.0%
• Four-bedroom homes: +8.2%
• Five-bedroom homes: +14.0%

This expanded inventory gives buyers more choices and negotiating power, especially in segments that have seen a higher supply.

Homes Are Taking Longer to Sell

One of the biggest shifts in the market is the increase in days on market. In February 2025, the average home took 57 days to sell, marking a 17.5% increase compared to February last year. This signals a slower-moving market where buyers are taking their time before making offers.

Affordability Challenges Persist

Even with increased inventory, home affordability remains a concern for many buyers. High mortgage rates, coupled with elevated home prices, continue to make it difficult for some to enter the market. Until there’s a significant decrease in borrowing costs, we expect many potential buyers to delay their home purchases.

Final Thoughts: What This Means for Buyers and Sellers

For Buyers:

More inventory means greater selection and stronger negotiating power.

Look for properties that have been sitting on the market longer for potential deals.

Consider sellers who may be willing to negotiate price reductions or offer incentives.

For Sellers:

Competitive pricing and staging are more important than ever.

A 4-point inspection before listing can reassure buyers and prevent delays.

Offering incentives, such as covering closing costs or buying down interest rates, can help attract serious buyers.

If you’re thinking about buying or selling in Tampa Bay, understanding the latest market trends can help you make informed decisions. Feel free to share your thoughts—how does your local market compare? If you have any questions or need guidance, don’t hesitate to reach out!

Thanks for reading! Until next time.