New Homes | New Construction: A Real Estate Option Worth Review

In today’s real estate market many industry professionals are dealing with the lowest level of housing inventory in many years to show their ready and anxious home buyers.

On both a national level and locally in Tampa Bay, we have experienced the effects of the dwindling inventory as it relates to real estate options. We are frequently encountering multiple offer scenarios and bidding wars between buyers and sellers requesting highest and best offer. 

New home construction is gaining tremendous momentum and offers home buyers enormous options and appeal. Various areas of Tampa, Florida are on the right side of this opportunity.  We have always enjoyed the benefits of newly developing communities, new home starts, and luxury of turning to new homes as viable options for our home buyers.

The U.S. census reported that about 36.5 million people moved into a new home in 2012! The demand for homes in Tampa, Florida is clearly up and mounting. Last year concluded on a high note for most national home builders. Building permits are up about 12% from last year and builder confidence is higher than it has been in four years!

New construction homes are continuing to receive more notice this year as well.  So much so, that the CEO of national home builder K-Hovnanian was quoted in a recent business interview saying, “We can’t build homes fast enough.” Real estate agents and homebuilder sales associates are working more closely together in order to satisfy clients and close transactions. A new website designed specifically to make new home buying easier is being utilized for the benefit of all parties involved in a home purchase. BuildersUpdate.com  allows prospective homebuyers to search for new homes through their agents websites. Being that new homes are rarely advertised on the MLS, this gives agents and homebuyer a chance to see this inventory that is now or will be coming soon!  The websites goal is to increase the number of homes shown to new homebuyers and incorporate them into the real estate sales agents showing list.

Tampa, Florida has seen an increase in real estate prices for newly constructed homes.  In some Tampa areas new home prices have risen upward to $30,000. New homes have countless benefits such as a builder’s warranties, energy star certification, some closing cost assistance to buyers, and other incentives. If you are interested in exploring new home communities in Tampa Bay, call today before prices and mortgage rates rise.

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Why Now is a Great Time to Sell Your Home

Many real estate home owners have been waiting for the right time to sell their homes. Some stated reasons are that the market has not completed the correction, or they are waiting for home prices to continue to rise. These reasons often draw attention because some are not entirely up to the minute with real estate market pulse and how favorable the conditions are for sellers in today’s real estate arena.

Now more than ever, inventory levels have fallen more than 68% here in Tampa, Florida.  Available homes on the national level fell almost 2 million units last year!  Simple supply and demand would tell home sellers that your property is worth more because inventory is down. A national home data provider, Corelogic reported that home prices haven’t jumped this much in the last 6.5 years, and that this is mainly due to current tight home inventory. The end of 2012 showed an 8.3% increase from the prior year, an annual gain that hasn’t been felt since May 2006!

Corelogic went on to describe how the amount of homes in foreclosure is down 21% on an annual basis.  Home sellers are looking to capitalize on the depleted inventory should be doing so if you have been on the fence for years. While distressed properties dwindle, asking prices are also up in 86 out of 100 of the largest real estate markets, according to Trulia. Asking prices rose 6% from this time last year. While this sounds great, we need to take note of stronger market indicators such as job growth and record low interest rates, which also point to a healthier and longer lasting recovery. Tampa, Florida has seen this recovery in action. Our housing rebound is in full swing.

So as we enter the time of year when more buyers get eager to find the perfect home, and sellers make the finishing touches on their home improvement projects before putting their home on the market, we ask you to remember that now may be the most opportune time in six years to list and sell your home. Florida sees the most home searching activity in the moths of February and March so your chances of someone expressing interest are statistically higher. Also keep in mind that mortgage interest rates aren’t getting much lower and your buyers are ready now. This coupled with the continued drop in jobless claims indicates a stronger seller’s market that is anxious for some activity.

Ask us today to ask how you can maximize your selling power during these favorable times. Do not be left on the sideline wondering how much more of the pie could have been yours, call today to find out!

SI Real Estate, “Global Real Estate in Every Way

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Tight Home Inventory Levels Affecting Buyers & Sellers

While more and more positive real estate news trickles in, we examine some of the direct causes of these seemingly endless, yet favorable outcomes.

Housing inventory has waned over the last year. So much so, that we have seen the amount of homes available on the national level drop by about 1.8 million units.  At a more local level, Tampa, Florida has seen a dramatic decrease of 68% in home inventory! 

So we ask, why so low? 

Well, about 22% of homeowners remain underwater with their mortgages. Sellers are usually deterred from listing their home if they have to bring cash to the table or embark on a short sale. Now that home values are finally bouncing back, both home values and the amount of sellers who owe more than their property is worth are two factors that will continue to have an impact on home inventory.

Investors are always trying to grab the best deals that produce the highest returns. This usually involves paying cash for real estate purchases. The rental market has seen an uptick in activity; so many investors are holding their real estate inventory while turning higher profit with rentals. Being that Tampa, Florida is a hot spot for international investors; we live this wave of activity daily. 

So while some sellers continue to wait until their homes value is closer to what is owed on mortgages; and a large volume of investors snatch up bank owned properties and short sales, we may continue to see housing inventory fall both in Tampa, Florida and on a national level.

One thing is for sure, the longer sellers wait, the more chance they have of mortgage rates ticking back up, which will restrict some buyers from entering the market.

Qualified buyers may choose to rent, but can warned that they may be missing the most opportune time to own a home ever!

About us:

SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchaseand sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!” 

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Real Estate Updates: What’s Up, What’s Down?

We are constantly being reminded about the condition of the real estate market, both nationally and locally. No matter which media outlet you choose to ingest, you are most likely seeing, hearing and wondering what is up and what is down, and more importantly, what it means for you. Here is a brief recap of some figures to keep in mind.

What’s Up:

We have heard this for the last few months of 2012 and will continue to hear that home building is on the uptick. Up almost 40% from the previous year, home start are on the rise. At the most recent InternationalHome Builders Show in Las Vegas, the National Association of Home Builders Chief Economist, David Crowe said, “Nearly every measure of housing market strength – sales, starts, permits,  and builder confidence – all have been trending upward in recent months and we expect to see steady growth to continue in 2013.”

Home prices also continue to rise. On a national level, we ended up with a 5.6% increase from last year. At a local level, Tampa, Florida has experienced a hefty 22% increase in homes median sales price, while the average price per square foot edged up almost 50%! If prices are up, one can imagine that more home owners are finally willing to sell. The home purchase index was 26% higher last week compared to this time last year. Tampa has seen some of the largest gains in the past year as home prices, home sales, and home building all continue the upward trend.

What’s Down:

The reason for some of the increases mentioned above are partly due to the very low home inventory both nationally and right here in our Tampa market. Home inventory is down 17% from this time last year! The national home inventory level currently shows a decrease of 26.6%. This creates multiple offer scenarios and allows sellers to hold a bidding war, which is the type of war they sure do appreciate waging.

Florida felt the brunt of the bubble burst and since then has had a high volume of short sales, REO’s and foreclosures. Luckily for both homes sellers and buyers, the time it takes to complete a short sale is getting shorter and shorter. Freddie Mac now estimates that the time to complete a short sale will decrease by 50% to 75% as a result of steps the government enterprise has implemented in order to speed it up. This also means a diminishing rate of foreclosures which will keep adding to the value of homes.

SI Real Estateoffers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!” 

The real estate market is clearly making a turn for the positive. Call us today to discuss how you can keep up with the changes and maximize your real estate potential. 

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Property Inventory Dropping: Tampa, Florida Among The Lowest Inventory

A report published by the web based real estate company, Zillow, shows that the amount of homes for sale fell by 19.4% in the last year! Zillow divided the statistics by price tiers. The greatest reduction of inventory has come from the top two tiers.

Three metro areas of Florida made the list with Tampa, showing a year over reduction of 19.8% for the top tier, and 23.3% for the mid-tier homes. The overall average reduction in inventory was 22.9% for Tampa Florida real estate market. This should make it easy for fence sitters who are waiting on the sideline for the “right time” to list their homes. Those who have questioned selling their home for the last year are beginning to realize that they missed the bottom a while back and may be scrambling to catch up.

As far as buyers are concerned, the time has passed for them to offer $10,000 under listing price. The days of low ball offers are over. Buyers are now starting to participate in bidding wars over properties that used to be great “steals” and are finding themselves out of luck. We have seen this mix of declining home inventory, record low interest rates, and the general supply and demand curve start to look normal again for some time.

Our question to you is, why wait? Call us today to discuss your real estate goals and options, and don’t be the one on the sideline wishing you would have acted sooner.

SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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Less Inventory + New Guidelines = Brighter Housing Outlook

Real Estate inventory could not keep up with the demand for homes during the month of July. This is now the fifth month in a row we have seen a correlation between supply and demand that is favorable to a thriving real estate market. The National Association of Realtors reported that the national median home price is up 9.4% from a year ago at this time, which is the strongest gain since January 2006! Our local Tampa, Florida real estate market has seen gains even higher than the national average and boasts a 12.4% increase in median sale prices from a year over perspective. Sales of existing homes are also up 10.4 % from this time one year ago. Chief economist for the NAR said, “Mortgage rates have been at record lows this year while rents have been rising at faster rates. Combined, these factors are helping unleash a pent-up demand.” The demand stems from a 23.8% decrease in listing inventory from a year ago and looks like it will continue to fall.

Not only are homes being sold at higher prices with every sale, but other major factors are influencing the real estate market. New guidelines set forth by the Federal Housing Finance Agency regarding the short sale process are warmly welcomed by many buyers, sellers, and realtors. The new guidelines call for a more streamlined paperwork process and offer up to $6,000 to second-lien holders. The FHFA will require little or no documentation from borrowers who are delinquent on multiple loan payments, suffered a financial hardship, or have low credit scores. For those who are still current on mortgage payments, servicers will have more flexibility to process short sales for homeowners dealing with hardships. The numbers of foreclosures will diminish once this goes into effect on November 1, 2012. This is supposed to have a positive effect on the value of communities that are suffering from homes being appraised at lower values.

Keeping homes occupied and avoiding the foreclosure process will undoubtedly raise the quality of communities and all around real estate market, especially in the Tampa, Florida market. This boost will contribute to an already up swinging number of short sales that make up the real estate transactions in Florida. 8.8% of all home sales were the product of short sales, which is up from 6.5 percent in 2010.

SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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SI Real Estate Has Its Finger on the Pulse of the Real Estate Market in Tampa Bay

Pulse 1 ~The Buyers Real Estate Market


Local, national and international buyers are purchasing real estate here in the Tampa Bay area and around Florida like there is no tomorrow. The real estate market is booming with sales. Real estate prices are fantastic, mortgage interest rates are great, and people are taking advantage of the opportunities that are available.

At this point in time, it is becoming more the norm to have multiple offers on properties for sale, indicative of the swarm of buyers into our real estate marketplace in Tampa Bay. First-time home buyers, along with move-up or repeat home buyers, and local and international investors are all jumping in with both feet to get their piece of the action during these unprecedented times.

Pulse 2 ~The Real Estate Rental Market

In an article titled, Cheaper to Buy Than to Rent in 72% of Largest U.S. Cities by Inman News dated January 24, 2011, “Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.”

There has been a large influx of people entering the rental market due to the economic downturn. Prices are rising for rentals as a result. The economics of supply and demand are taking affect. Pete Flint who is the CEO and co-founder of Trulia stated, “Since the start of the 'Great Recession,' many former homeowners have flooded the rental market. Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets."

The article continued to say that it is less expensive to buy a two-bedroom home than to rent one in 36 out of 50 of the country's most populous cities. Interestingly, some of the cities include many areas that have been hit hard by foreclosures, such as Las Vegas, Phoenix and California.

Pulse 3 ~ The Sellers Real Estate Market

Although we are in a strong buyer’s market, sellers of real estate are also witnessing strong interest in their properties. Multiple offers are being made on many properties which lead to bidding wars and helps increase the price of homes, townhomes and condominiums that are on the market.

With all of the talk about it being a “buyer’s market” not as much has been said about the direct affect on the “seller’s market”. In an article titled, Home Price Stabilization Seen in Most Metro Areas during Fourth Quarter, Sales Up, Lawrence Yun, NAR chief economist, stated he is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have trended down,” he said. “A recovery to normalcy requires steady trimming of the inventories.”

With buyer’s feverishly grabbing up real estate, inventory is being reduced leading the way to recovery in the real estate market and the overall economic health of this country.

Pulse 4 ~ SI Real Estate is Working in All Aspects of the Real Estate Market

SI Real Estate works in all aspects of the Tampa Bay area real estate market and truly feels the pulse of this marketplace. With expertise in buyer and seller representation, property management, bank owned/REO and short sale property acquisition and sales, finding a company more diverse in its offerings will be hard to find. Combine our real estate expertise with our superior customer service, as evidenced by our loyal client base, and you won’t want or need to look any further for your real estate company. Call SI Real Estate at (813)631-5144 today and put your finger on the pulse of the real estate market right here in Tampa, Florida. It is an exciting time to be in real estate!!!

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