TAMPA, Fla. — The booming real estate market in Tampa Bay is expected to see lower home prices next year, according to a recent report by Zillow.

That report says home values for 2025 in Tampa could drop by about two percent.

But, according to local realtors, like Sunny Alexander, a broker and owner of Red Sash Realty, she anticipates things will be looking great in 2025.

“All the numbers that I’m seeing are showing a healthy, balanced market and that you’re looking at about three to five percent appreciation per year,” she said.

Recently, according to Alexander, chaotic has been the best way to describe what’s been happening on the real estate front.

Demand is still there, but she says fluctuating interest rates, especially around the election, along with hurricanes Helene and Milton have effectively scared buyers.

It makes 2025 interesting, especially following that report from Zillow and a national housing report from RE/MAX from last month, which reports Tampa was the top market in the country to see median sales prices go down compared to 2023.

Despite Alexander’s optimism, she thinks price drops could likely happen further from downtown.

“When you get up in the suburbs of Tampa,” she said, “I think that you’re going to see a slight dip in prices on the new construction. Just because supply is so, so high and there’s land you can’t replicate.”

She says in neighborhoods like Seminole Heights or South Tampa; the land is still very expensive, so she thinks home values will keep rising, albeit at a much more regular pace compared to a few years ago.

“Back in 2021,” she said, “you’re looking per quarter at 25% appreciation on your asset. Those days are gone and they’re not sustainable. So, I think it’s returning to a healthy market.”

A healthy market is important for so many looking to sell, especially with so many still looking to buy.

According to that same RE/MAX study, homes in November were selling faster compared to October, decreasing by about eight percent.