Tampa Palms, Westchase, Carrollwood and Tampa Bay Real Estate News From Jeanne Prigitano

As 2011 begins, the question everyone is asking me is what is in store for the Tampa Bay Real Estate market. The quick answer is I’m not sure. I will probably be right on with some of my predictions and way off on others … just like every other real estate expert. As an experienced Realtor and consumer in the Tampa area, I thought I would share some observations and thoughts.

I believe that 2011 will continue to be a buyer’s market. Inventories will begin to decline but there will still be more houses on the market than buyers. Houses are more affordable than they have been in decades and interest rates are still low. If you are able, now is the perfect time to buy.

I have noticed more “investors” back in the Tampa market. This is usually the first sign that the housing market is improving. This is especially true in the condo market, although I am seeing it in single family home sales. For example, I see buyers purchasing 2 bedroom condos for $50,000 to $60,000. These condos are then rented for $800 to $1100 a month. This is a much better return than some other investments. Is it risky? Of course it is. Nevertheless, it is highly unlikely the value will go down to zero which may not be true of other investments. Yes, the property may not rent but I am also seeing a healthy rental market. This may be due to the fact that people have lost their homes and have low credit scores and no down payment making rentals the only option. Some of this will translate into improvements in the redevelopment of apartment complexes and the commercial aspects of the real estate market which is also necessary for growth.

Florida is still a bargain compared to other places in the country and is still a destination State. The first of the baby boomers hit 65 this year and a warm climate is still where many want to be. There are many places in the country that may never come back. Fortunately, Tampa is not one of them. Baby boomers are purchasing their homes now, while prices and interest rates are low, for retirement in the next few years. The opportunities are there.

Another phenomenon of note is the bigger new home builders are building once again. Yes, some builders have gone under but others have taken over these sub-divisions (at bargain prices) and have started building once again. Right here in Tampa Palms, Standard Pacific is building brand new single family homes starting at under $200,000. New construction in Tampa Palms for $200,000 where you have choices…that was unheard of in recent times. And they are selling on average 2-3 a month.

Many believe that this is a first-time buyer’s market. Absolutely, conditions do favor the first time buyer. However, conditions are good for the move up buyer as well. Although sellers may sell low, they can buy low. Houses that were out of reach are now more affordable. Proportionally, houses at the higher end of the market are even better buys and favor the move up buyer.

Will Tampa continue to see foreclosures and short sales in 2011? Unfortunately, yes. In the last few months of 2010, more than half of all sales were foreclosures and short sales. Does that influence market value? It does. Tampa has seen a decline in the housing market beginning in 2006 and peaking in 2008. There has still been a decline but not as steep. I really don’t envision a steep decline in 2011 and, in some Tampa neighborhoods, there will be stabilization in prices if they are not there already. It won’t be till at least 2012 before we may see any appreciation in the Tampa Real Estate market and even then it will only be around 1-2%.

So, what does this all mean? This is not a normal housing market. However, it is Tampa’s new normal. We have been in this terrible housing market for over 4 years. Declines have not been as dramatic and will not be in 2011. This is it, for now. I know that not everyone can buy or sell right now but if you can and there are compelling reasons to do so, now is the time. There will not be dramatic shifts in 2011 and for all the reasons I mentioned above, I believe we will start to see some improvement. Just as the holiday shopping season showed improvement so will the housing market. People have started to accept the current reality and have made adjustments.

I also know that the situation may be dire for some. Although some of the programs out there have been a total disaster, there are some that may offer some help and relief. As a Certified HAFA (Home Affordable Foreclosure Alternatives) agent, I may be able to help in the sale of your primary residence if you feel that you must move or can no longer afford your mortgage payments. Under a HAFA short sale, should you qualify, deficiencies will be forgiven and you will receive $3000 to help with the transition. If you are a buyer with a less than perfect credit score and no down payment, remember that I can help with “Lease to Own”. Lease to Own is also a good option for Sellers who have had difficulty in selling their homes. Remember, the rent payments are guaranteed for 18 months.

I’m not sure what is in store for the Tampa Housing Market in 2011. It is all part of the larger economic condition. All I know is I am more optimistic than I have been in years.

A Very Happy, Healthy, Prosperous New Year to You and Yours! Here’s to a better Tampa housing market and an improved economy.