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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Foreign Investors Cashing in on U.S. Real Estate

According to the National Association of Realtors, foreign buyers accounted for $82.5 billion spent in the residential real estate market for the twelve month period ending in the first quarter. That equals about 8.9% of all residential real estate transactions. Investors from Canada, Asia, Europe, and Latin America are all eager to invest their money into U.S. real estate. The weakness of the U.S. dollar compared to some currencies is an additional market factor as to why some investors like the odds of what some claim to be a “risky bet”. Recently SI Real Estate has seen an increase in rentals which stems somewhat from the hesitant nature of Americans when it comes to home buying. With rental rates increasing, investors will be presented with an even more favorable outlook when it comes to their returns on buying a home and turning the keys over to someone else to manage. Savvy foreign investors are beginning to invest their money for real estate in cities or areas with highly desirable rentals located in a walking friendly environment. More and more renters are looking to cut expenses, and gas is a major one. Cities with good “walking scores” like Tampa, Florida’s Hyde Park, Westshore, Channelside, and Westchase are target markets for these investors. Whether you are a prospective home buyer or a foreign investor, the best time to buy is quickly passing. Why wait until mortgage rates climb from the near historical low rates we are all enjoying now? With mortgage applications rates being the highest they have been since 2009 and inventory finally diminishing, your opportunity is now. Contact SI Real Estate for more information on how you can become a home owner in the most opportune of real estate markets. 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 Recaps 2011

It is quite common that around this time every December, end of the year recaps in various markets are released. You may hear a top 20 songs on the radio or see lists of best movie releases in 2011 on the television. Whether you care about what comes in at #1 on any list, it serves as a brief snapshot of what was news worthy that year. Here are a few of the more interesting and significant real estate stories of 2011 for you.
Mortgage rates hit an all time low, and dropped to 3.94 this year according to the National Association of Realtors. In some Florida cities, including Tampa, home ownership became cheaper than renting! On the flip side, the unemployment rate made some of those buyers and investors hesitant to go forth with a transaction. Some people may look back on 2011 as the best time in years to buy real estate and make an investment.
The Florida Legislature also showed signs of brighter days to come. In November 2012, Florida voters will be able to vote on Amendment 4, “scrap the cap”, which deals with Florida’s affordable housing trust funds. If Amendment 4 is approved, it will lower the property cap increase from 10 to 5 percent on non-homestead real estate. Scrap the cap will also give first time home owners property tax breaks that diminish over time. This could prove very helpful for investors in the Tampa Bay area.
Social networking went from something businesses did when time permitted, to a day to day, must do activity. With the number of users on Facebook, Twitter, and LinkedIn constantly rising, realtors, apartment communities, and investors are utilizing these web based tools to connect with others at a higher more personal level.
While looking back on the 2011 year in real estate, we saw many ups and downs, but more importantly we can say that we have learned to weather any storm. While still fighting to get back to a more stable market, we now have more experience and know how to deal with pressing issues. Knowledge base on buying and selling short sales and foreclosures had to expand in order to keep up with the market trends locally in Tampa Bay as well as state wide. If we can take this momentum, knowledge, and experience into 2012, we are sure to have a better year in the real estate world.

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Tis’ The Season for Buying Real Estate and Property Investments

Real estate investors and buyers are continuing to make property purchases that fuel the Florida real estate market. The third quarter boasted an increase in home buying and investing of 13% from last years numbers. Many of these new purchases and investments are viewed as long term and are helping stabilize our Tampa Bay real estate market. Even though Florida’s median sales price is lower than last year by a small amount, the volume of sales are significantly up. According to the National Association of Realtors, the foreclosures and sales of other distressed properties make the median sales price seem lower than what it actually is. Almost one thousand more condos were sold in October 2011 compared to October 2010, and the prices of those sold are up 9%. For more information about this, visit bizjournals.com.

Stan Humphries, a real estate expert for Zillow, notes that Americans perception that lending standards are tougher now than during the 2000-2006 time period are simply misconstrued. Since 2000 almost 10% more of applications for conventional home mortgages resulted in mortgage originations.

He also makes note that when looking at data regarding credit offerings, we should look at historical averages, instead of simply comparing 2000, 2006, and current year status. This eludes to the fact that down payments being paid by current borrowers on homes are higher now, 21.7%, than in 2007 when they were at 19%. But when taking the historical average into account, we are still below the historical average since 1974. Check out moneyland.time.com for more information regarding these statistics.

There seems to be an ongoing trend in Tampa bay real estate, and it is definitively looking up! While sale prices are down and volume of sales continue to increase, Tampa Bay is looking more attractive than ever. Contact SI Real Estate at 813.631.5144 or at info@SIRealEstateInvestments.com if you think you are ready to indulge in this great time for buying.

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