4 Things To Expect from the Tampa Spring Housing Market

by hommsales-chime-me

As the vibrant spring season kicks into gear, Tampa Bay’s real estate scene begins to blossom with opportunities—and challenges. Whether you’re buying your first home, upgrading, or investing, staying informed about the latest housing trends is your first smart move. Here’s what to expect in the Spring 2025 housing market across South Florida and Tampa.

1. Home Prices: Some Growth, Some Decline

Tampa Bay’s housing prices are a mixed bag this spring. In many neighborhoods, homes are holding their value or increasing slightly. Median sale prices reached $450,000 in early 2025, up 5.4% year-over-year. But, in other areas, values dipped nearly 6% over the last few months of 2024. This reflects broader market adjustments rather than a crash.

“Prices are stabilizing after a volatile 2023. We’re seeing more realistic seller expectations and opportunities for savvy buyers.”
says a HOMM Real Estate Services representative.

If you’re buying, this is your window to find a fair deal before any seasonal price upticks in summer.

2. Inventory Is Improving for Buyers

Over the last year, inventory levels in South Florida have improved. There are simply more homes on the market this spring than during the same time last year—up nearly 27%. That shift gives buyers more breathing room.

Bidding wars, while still happening in popular zip codes, are less common than they were in 2021–2022. More choices mean buyers don’t have to rush into decisions or waive inspections just to compete.

“A healthy level of inventory lets our clients explore options that truly match their lifestyle…that’s a major for both buyers and sellers.”
notes a HOMM advisor

3. Mortgage Rates Have Stabilized

For much of the past two years, high interest rates made headlines. But there’s good news this spring—mortgage rates are beginning to settle. A 15-year fixed mortgage now averages just above 6%, slightly down from last year.

This small but crucial dip gives hopeful homeowners more predictable monthly payments.

If you’re financing your home, it’s still smart to shop around for the best lender offers and lock in rates before they shift again. Stable rates make financial planning easier—and help determine how much home you can truly afford.

4. Insurance Premiums Are Climbing

Florida’s insurance market continues to challenge homeowners. In some parts of the state, premiums have risen 300–400% in just five years. These increases are primarily driven by climate-related risk and insurance company withdrawals from the state.

Before you buy, factor these costs into your total housing budget. A home that looks affordable at first glance might stretch your finances once insurance is added.

“We always advise our buyers to get quotes early—before they fall in love with a property.”
shares a HOMM agent

FAQs

Is this a good time to buy a home in Tampa Bay?

Yes, if you’re financially prepared. With increasing inventory and slightly lower mortgage rates, buyers now have more leverage than in recent years.

Will home prices in Tampa continue to fall?

Prices are stabilizing, not crashing. Expect modest fluctuations this spring with a possible increase later in the year.

Why are Florida insurance premiums rising so quickly?

Climate events, litigation costs, and fewer insurers in the state have pushed premiums higher. It’s a critical cost to factor into your purchase.

How can I avoid overpaying for a home this spring?

Work with an experienced local agent like HOMM Real Estate Services. They’ll help you identify homes priced fairly and avoid bidding traps.

Are there any special programs for Tampa Bay first-time buyers?

Yes! Florida offers several programs for first-time buyers, including down payment assistance. Your agent can connect you with the right resources.

What areas in Tampa are best for investment right now?

Emerging neighborhoods like Seminole Heights and Westshore are drawing attention for their mix of value and potential.

Conclusion

Spring 2025 is shaping up to be an encouraging season for homebuyers in Tampa and across South Florida. Rising inventory, steady mortgage rates, and realistic home prices create a window of opportunity. Still, insurance costs are a factor to watch.

The best way to navigate it all? Partner with a trusted local expert. HOMM Real Estate Services understands the Tampa market inside and out—and they’re ready to guide you toward your next dream home.