Q2 2022 brought the first cracks in the frenzy. Rising mortgage rates — from 3.5% in January to 5.5% by June — cooled buyer demand significantly. Multiple offer situations dropped from universal to common. Inventory began building for the first time in two years. Prices remained elevated but the pace of appreciation slowed.
What Were Median Home Prices in Q2 2022?
Hillsborough County: $375,000, up 12% YoY but flat from Q1. Pinellas County: $355,000, up 14%. Pasco County: $330,000, up 16%. Manatee County: $415,000, up 12%. Sarasota County: $445,000, up 13%. Polk County: $295,000, up 15%. Appreciation was still strong but decelerating rapidly.
How Did Rising Rates Change the Market?
A buyer who qualified for $400K at 3.5% could only qualify for $330K at 5.5%. That purchasing power loss priced thousands of buyers out of their target neighborhoods. Brandon and Plant City buyers shifted to Lakeland and Ruskin for affordability. The rate shock was the single biggest market shift of 2022.
What Happened to Inventory?
Active listings grew from 0.8 months of supply in Q1 to 1.5 months by end of Q2. Still a seller's market by any measure, but the trend was clear — the frenzy was fading. Sellers who listed in May-June got strong results. Those who waited until July started seeing less competition and more price sensitivity from buyers.
Questions about the Tampa Bay market? Barrett Henry, REALTOR® and Broker Associate at REMAX Collective, brings 23+ years of real estate experience to every transaction. Call (813) 750-0926 or email barrett@nowtb.com.