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DAVE MAKS CRS. GRI.
2008 TAMPA BAY CURRENT MARKET CONDITIONS
2008 MARKET RECAP Late 2005 into early 2006 the housing boom in Tampa Bay and many places all over the state of Florida slowed to a halt and started backing up. Contributing to this: were rapidly appreciating properties, greedy lenders allowing buyers to purchase with less astringent loan programs and builders fueling the fire with more new inventory. This included: new luxury condominiums, town homes as well as entry level condominiums and apartment conversion condominiums. Overall these inventory levels of properties continued to escalate until demand further diminished and finally values started to fall. . In respect to the Condominium market there is concern that quantities currently under construction or conversion have exceeded Buyer demand. Also investor participation within each of these developments could negatively affect the market place when units are completed and investors put them back on the market. Influx of population into Florida has diminished in the last couple of years. In 2007 migration influx was 50.1% incoming versus 49.9% moving out. 2005 hurricanes, as well as taxes and insurance costs have greatly contributed to this. However Florida is still highly recognized as being a sunny paradise where many have vacationed in the past and population increases are forecasted. Baby boomers are still expected to retire here and Tampa Bay is still poised to continue to grow because of it’s low median home prices, low 3.8% unemployment rate and a surge of corporate expansion into the area. Meaningful property tax law changes are currently being voted upon. If the legislation passes property taxes will dramatically be reduced and could possibly kick start the housing market for recovery. The combination of these factors coupled with the amenities Tampa Bay offers its residents has kept Tampa Bay popular. 2007 most certainly showed similar decreases of values of 2006 of anywhere from 5 to 8% from the near 150% increases of 2003 through 2005. CURRENT MARKET CONDITIONS A Buyer’s market currently dominates in Tampa Bay. Many more homes are for sale than there are Buyer’s to buy them. Seller’s are coming to the realization that their homes are not worth what they used to be worth and we’ve seen homes priced above market values to be negotiated to very attractive levels. Entry level new construction values have dropped from the mid 200’s to the the lower 200’s with many Buyer incentives in place. Keep in mind that location influences much of this as certain areas continue to be in demand and values have been less affected. Current predictions see the market becoming more stable in the 2nd or 3rd quarter of 2008 as inventory levels return more to a more balance level. PINELLAS COUNTY Pinellas county home to Clearwater, St. Petersburg and many beach front towns is mostly all built out. For years retirees have moved to Pinellas county and therefore the density of this county is twice that of Hillsborough county where Tampa is located. Downtown St. Petersburg is currently growing with new condominiums and rehab of old northeast neighborhoods show bright promise for a great living area. Pretty much what is on the beaches remain or are being knocked down to be replaced with upscale new condo projects. 54 CORRIDOR As Tampa moves northward over the northern Hillsborough and southern Pasco county lines hwy 54 is the first stop. This highway runs east west from the Tarpon Springs through Odessa, Land O Lakes, Lutz, Wesley Chapel and into Zephyrhills. This highway with its close proximity to Tampa is well on its way to further infrastructure enhancements which will include the regional mall Cypress Creek. 15 new subdivisions are already in place with others planned to be coming soon. SUN COAST PARKWAY On the Northwest side of Hillsborough County, as Tampa builds out its last available lands in Odessa and Lutz the new extension of the Veterans Expressway called the Sun Coast Parkway has brought much of Northwest and North Pasco and Hernando Counties much closer to the Tampa area. What used to take hours to get to in Tampa from many of these rural areas in these counties has now turned into ½ hours. That being said, this Sun Coast Corridor is a hot spot for development and growth. Any of the areas within close proximity to getting on the Sun Coast Parkway will grow aggressively in the next number of years. SOUTH SHORE Otherwise known as Southern Hillsborough County with Brandon at the North moving south to Riverview, Apollo Beach, Ruskin and Gibsonton this area is being termed as the South Shore area. This will be another area of aggressive growth over the next decade because of its close proximity to Brandon, Bradenton, Sarasota and the Pinellas beaches all within a 30 minute reach. Subdivisions are sporadically coming on line with multi-million dollar projects like Mira Bay which is in Apollo Beach selling its upscale waterfront location. INTERSTATE 4 CORRIDOR The last area to be developed in Hillsborough County will be this I-4 corridor with cities like Plant City, Lakeland and others within its reach. We haven’t seen much development here however it is a place which will surely blossom as the I-4 widening project finishes. From eastern Hillsborough County one could easily get to Orlando in less than 1 hour time as well as get into Tampa within 30 minutes or less. What To Expect
The first thing that most new to the area buyers will have to realize is that lot sizes vary greatly from northern homes to Florida homes. Of course, higher priced properties will have larger lots but if you are looking in the $175,000 to $350,000 level, lots range from 50 X 100 to 80 X 140. The reason lies mostly on impact fees which subsidize the school systems which developers have to pay which trickles down to pricing of homes. Hence subdivision builders trying to keep the cost of newer construction at a minimum utilize every square inch in the planned development. Older neighborhoods of the 70's and 80's can still be found though with larger lots in these price ranges. For a more in depth understanding of the market, feel free to contact Dave Maks. In person overviews are also availalbe to prospective relocation individuals which can truly help one understand the market place and help enable them to be well informed before making those very important decisions.
FIRST TIME HOME BUYERS - $160,000 -- $265,000
Expect a nice selection of townhomes, condo's and single family starting as low as $90,000. Depending on age and location we should have no problem assisting you find a great first investment. An average single family starter home will cost you between $160,000 and $250,000.
HOMES $300,000TO $500,000
In this category of housing you can expect newer 3 and 4 bedroom 2+ bathroom homes with 2 car garages or 3 car garages and square footage of 1700 SF to 2800 SF. A 1990's 4 bedroom 2000SF pool home 20 minutes from the international airport can be found for around $295,000. A 3 bedroom 1600SF pool home can be found around $225,000. The further you get away from the bay area the prices start dropping. Pasco County is another great place to consider since taxes and auto insurance are less. The southern edges of Pasco County averages 45 minutes drive to Central Tampa Bay. Pinellas County, home of Clearwater, St. Petersburg, and many beach towns is more expensive to live in since. This is due to a smaller county land mass and a much higher density of population. For the most part Pinellas County is totally built out with exception to the far north in the Tarpon Springs area.
WATERFRONT, EXECUTIVE, LUXURY PROPERTIES
Of any real estate property that is appreciating or the fastest is "waterfront properties" In 2006 - 2007 waterfront properties depreciated much less than that of non-waterfront property. As you must know already, there is very little new waterfront left therefore a waterfront investment is one of the safest out there. There is much to know about waterfront and you should counsel with an agent who knows before making any purchasing decisions. Waterfront value is all dependent on type of access the waterfront offers. Many times your access is limited by low bridges or shallow water. If you desire open water or canal living with deeper water access to the bay's, intercoastal or gulf, plan on spending between $180,000+ for a 1 bedroom condo - $300,000+ for a two bedroom condo - $450,000+ for a single family home depending on newness and square footage. Newly renovated resale homes on canals begin at $500,000. If you are looking for a newer contemporary home 3 or 4 bedroom on deep water plan on investing a minimum of $650,000 on up with average pricing in the low 1M range. Higher square footage's of 2800 and above plan on spending $900,000 and above. Still, when you look at other waterfront luxury properties around our country, I believe this arena is still a great place to invest.
ESTATE PROPERTIES
Whatever your pleasure you will find highly diversified styles of estate properties around the Tampa Bay Area. Beachfront on the Gulf can still be purchased in some areas around the million dollar mark. Also intercoastal living is quite nice where your home can be situated with wide extensive views of the intercoastal waterways priced in the $500,000's and above. If a country club setting is what your desire is, there are several Country Club communities which should fit every budget. If acreage is what becomes you, the Tampa Bay area has much left to purchase in raw land and design your own estate or find a ranch of 5 acres or more in many locations. If fresh water sking and lake viewing is your dream, the Tampa Bay area is full of opportunity in established areas.
RETIREMENT LIVING
Sun City in southern Hillsborough County, Tampa Bay Golf and Country Club and The Groves are just a few of the 55 and over communities. Great golf courses, active lifestyles and entertainment are much of what is involved in these communities. The other avenue is the beach or intercoastal waterfront condo market. Imagine playing golf, tennis, or walking beaches until your heart is content. We'll be able to assist you in your endeavor to relax and enjoy a retirement home here in Tampa Bay. To your future! Dave Maks
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