Overall, the Tampa Bay area has steady prices and a steady flow of active and sold listings, although more would help to level out the shortage of inventory.  Pinellas County has a reported absorption rate of single family homes of 36.5%.  What this means is that over 36% of the homes for sale are being purchased or “absorbed” off the market, a positive indicator for sellers.  A healthy absorption rate is around 25%, where buyers and sellers are on a more even playing field and anything above that mark tips in favor of sellers and higher sale prices.

A higher absorption rate means a smaller inventory for buyers and higher prices.  Currently, there is about two and a half months of inventory available taking about one month to receive a contract for purchase.  Still, despite higher prices and fewer homes to choose from, buyers can take advantage of lower interest rates with the 30-year fixed rate mortgage hovering around 4.3%.