Tampa Bay Market Conditions
2010 Tampa Bay Current market Conditions
STATE OF FLORIDA 2010
In January 2010, Florida’s existing home sales rose again marking 17 months of increase in year to year comparison according to the latest data released by Florida Realtors®. That increase was 24% in January with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009. Condo’s rose 81% compared to previous years sales figure.
From a year ago, Florida median sales price for existing homes has fallen to $130,900. Last year it was $139,400, showing again another 6% decrease. Distressed properties continue to influence and distort the median price because they sell at a discount relative to traditional homes. Median price is the midpoint; half the homes sold for more, half for less.
Statistics for condominium year to year sales in Florida, 4,631 units sold statewide in January 2009 compared to 2,554 units in January 2010 showing an increase of 81%. The median sales price in January 2010 was $97,500; in January 2009 it was $113,300 a decrease of 14%. Nationally the median price for existing condominiums was $183,700 in December 2009, according to the National Association of Realtors®.
TAMPA CURRENT MARKET CONDITIONS
(April 1, 2010 – Dave Maks) In the counties of Hillsborough (Tampa-Brandon), Pinellas, (St. Petersburg – Clearwater) and Pasco (Land O Lakes – Wesley Chapel – New Port Richey) a buyer’s market continues to prevail. Property values have continued to decline in most markets to date however we are seeing some stabilization occurring in certain neighborhoods where it appears that the market has hit bottom. In these neighborhoods we see low inventory levels of in demand good condition properties which has caused some multiple offer transactions.
The market is still flooded with distressed sales of bank owned foreclosed properties and short sales. Short sales are properties listed by sellers who are trying to negotiate short sales with their mortgage holders. As of April 1, 2010 looking strictly at single family houses actively listed, 31.4% are currently distressed properties. However when we look properties currently under contract (actively listed - pending closing), 64% are distressed. The reason for this is that many of these are short sales which remain pending sales for many more months than average and many do not close. Combining actively listed with pending properties for the tri-county area is a real eye opener. Of 40,205 properties 71% are distressed. The median price of these properties is $169,000. The average price is $274,000.
Looking to actual sold and closed properties in the last 6 months in the tri-county area, 11,136 properties have closed. Of those sold properties 2,527 (22.3%) were short sales 1,670 (15.0%) were bank owned foreclosures. 37.3% of all single family houses that closed were distressed. The median price of these sold properties is $139,000. Average price is $176,000.
Now the million dollar questions are:
The good news is that interest rates continue to hover around 5%. Buyer incentives such as the tax credit for first time home buyers and move up and move down buyer’s will help reduce inventories. Prices in the area have reached unbelievable lows. Seller’s which have to sell realize that the only way they can achieve that is to become more competitive with the distressed properties which are currently manipulating the market and the market appraisals of properties.
Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent in January 2010, slightly lower than the average rate of 5.05 percent in January 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
TAMPA LABOR MARKET
A not so bright area of our market is that employment declined by 7,952 jobs in October and November of 2009. The lost jobs raised the monthly unemployment rate from 11.3% in the third quarter of 2009 to 11.9% for the second two months of the fourth quarter of 2009. This of course crates a drag on buyer confidence and demand for homes in the Tampa Bay market. The saving grace is that mortgage interest rates for a 30- year fixed-rate average around 5.03% in January 2010, slightly lower than the average rate of 5.05% in January 2009 according to Freddie Mac. Closings typically occur 30 to 90 days after sales contracts are written when pricing reflects closer to actual market value.
HILLSBOROUGH COUTNY – TAMPA
(April 2010) Currently there are 4804 actively listed single family homes on the market. If we add the properties which are under contract awaiting closing that number jumps to 8,127. In the last 6 months 4,913 properties closed and sold.
Looking at year to date sales numbers ending in January 2010 compared to last year; residential home sales sold 732 versus 634 from a year ago, condominium sales 140 versus 82, townhouse sales 75 versus 68, villa sales 21 versus 12.
Another interesting number to view is time on the market statistics; 313 were on the market less than 30 days, 125 were on the market 31 to 60 days, 92 were on the market 61 to 90 days, 67 were on the market 91 to 120 days and 253 were on the market over 120 days.
MORTGAGE MARKET CONDITIONS
In respect to the mortgage business, don't believe what you are hearing or reading on obtaining home loans. Albeit qualifying has changed to be a little more astringent but if you have run your financial house the right way, most can easily qualify. Kam Garms with Excel Mortgage Network, is a great place to start when obtaining information on what type of mortgage that best fits your needs. Kam is a seasoned professional. Whether it is preliminary questions years before your purchase or actually applying for a mortgage, Kam will keep your best interests at heart always. He can be reached at 813-758-2004 or through the website: www.KameronGarms.com . He relayed to me some of the programs he currently has at this time. We also have several other firms we have worked with in the past who we can refer you to in the lending arena.
LAY OF THE LAND
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. 15 new subdivisions are already in place with others planned to be coming in the future.
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 FIRST 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 or any of his team members. 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. |
