April 22, 2025 – Tampa, FL
According to UrbanKey Real Estate’s quarterly report, home sales in Tampa Bay fell by 13% in Q1 2025 compared to the same period last year. While median prices remained stable, buyer activity slowed in response to continued interest rate increases by the Federal Reserve.
“We’re seeing more cautious buyers, which makes accurate pricing and strong marketing more essential than ever,” said Marcus Hill, Senior Broker at UrbanKey. The Tampa Bay real estate market experienced a noticeable slowdown in the first quarter of 2025, with home sales declining by 13% compared to Q1 2024, according to the latest data from UrbanKey Real Estate. The report attributes the dip in activity to continued interest rate hikes by the Federal Reserve, which have placed added pressure on buyers and cooled demand across much of the region.
Despite the slowdown in transaction volume, median home prices have remained relatively stable, indicating that while fewer homes are selling, sellers are not yet resorting to significant price cuts. The Tampa market, known for its resilience and long-term growth, appears to be in a period of correction rather than a downturn.
“We’re seeing more cautious buyers, which makes accurate pricing and strong marketing more essential than ever,” said Marcus Hill, Senior Broker at UrbanKey. “In this type of market, sellers need to understand that strategic presentation and realistic expectations are key to a successful sale.”
Rising Interest Rates Shift Buyer Behavior
Over the past year, the Federal Reserve has implemented a series of interest rate increases in an effort to curb inflation. As mortgage rates climb, buyers are seeing reduced affordability and borrowing power, prompting many to delay purchases, downsize, or shift to renting.
According to UrbanKey’s analysis, first-time homebuyers and investors have pulled back the most, while cash buyers and relocators from higher-cost states continue to show interest — albeit at a more measured pace.
Inventory and Days on Market
While inventory levels have risen slightly, they remain below pre-pandemic averages, and many listings are lingering longer on the market. The average days on market increased to 34 days, up from 22 in Q1 2024 — a sign that homes are taking longer to attract qualified offers.
“Buyers now have more leverage than they did during the post-pandemic surge,” Hill added. “That doesn’t mean sellers can’t get strong offers — it just means they have to be more strategic.”
Outlook for Spring and Beyond
As Tampa heads into the traditionally busier spring and summer seasons, market watchers are closely monitoring the Fed’s next moves and consumer confidence levels. UrbanKey expects pricing to remain steady in the short term, but warns that prolonged high rates could place additional pressure on sellers.
About UrbanKey Real Estate
UrbanKey Real Estate is a full-service brokerage serving the Tampa Bay region. With a focus on market intelligence, innovative marketing strategies, and client-centered service, UrbanKey helps buyers and sellers navigate the dynamic Florida real estate landscape with confidence.
