Real Estate Prices and Values: Gap Widening Between Listing & Sales Price

So far, 2012 has provided countless signs of an enhanced real estate market. We are constantly being reminded of the historically low mortgage rates, median sales prices rising, and buyers’ confidence higher than the last several years. What we may be missing out on are the real life examples of how this impacts an agent and buyer relationship. Here are some valuable bullet points that will give you a real estate reality recap!

Listing price: - Usually properties do not sell for this amount. - Listing prices are most often a tool to trigger showings and offers. - Average listing price in Tampa is: $308,425 / Median Sales Price: $114,505, an impressive 14% increase from last yr. (updated mid-July) - Here is an example of a real life Tampa transaction: Recently one of our brokers sold a condo at $172K. Listing price was $155. Multiple offers were submitted. Read more about this trend here.

Comparative Listings: - Investors decisions based on ROI - Homes that were purchased at the beginning of 2012 will not yield the same return rate if you were to purchase it now. A townhome an investor client purchased last year at $80,000 are now selling for $126K. Be sure that the bottom of this real estate market was quite some time ago. - Median sales price last year in July were $99,000. July 2012 prices are now upward to the $115,000 range, and climbing as supply is diminished.

Other factors leading to a more stable real estate market: - Building permits for new homes has hit the highest number in 4 years - Lowest supply of homes for sale since 1963 (144K in June 2012) - Fewer foreclosures are making up the bulk of the real estate sales.. Excellent news. - All 20 cities that the S & P home price index tracks are seeing increases, including Tampa!

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Tampa Real Estate Sales Still Rising

Although there has been a high number of a sale in the Tampa Bay real estate market the last couple of months, the industry is sending some mixed signals. What is happening in our changing market?

According to The Tampa Tribune, “Homes sales are climbing, up 16 percent from a year ago and 24 percent from last month”. However since there is such a high number of bank owned and distressed properties, the median sale price is only $111,100.

Of the 2,375 real estate sales in Tampa in February 2011, a large majority were bought by investors. They see properties in distress, prices continuing to decline and investors are cashing in.

The spring selling season is around the corner however, and projections are expecting more traditional homebuyers to start jumping in. Most first time and repeat homebuyers are not interested in the distressed properties. They start off looking at the price tag, but are not prepared to deal with the challenges once viewing the property. They see the value in finding a home that is ready for them to enjoy immediately. New construction home sales are up and with the new selling season, median sales price is expected to increase.

All of these statistics are causing one more interesting trend in Florida, real estate sales agents are increasing. According to The Orlando Sentinel, After a slump in the real estate market in mid-2007, the pool of real estate professionals has dropped more than 13%, however Since the beginning of 2011, the numbers have been edging back up, it is predicted that 268,257 registered brokers and agents were active in Florida’s real estate market by the end of February 2011.

With homes sales rising, positive projections of buyers confidence in purchasing real estate again, and professionals confidence in real estate careers, Tampa bay may be shaping up for some market improvements. Now is your time to move forward.

SI Real Estate works with Buyers, Sellers, and Investors to get the most out of the Tampa real estate market. Call us today at 813.631.5144 or email us at YourHome@SIRealEstateInvestments.com.

SI Real Estate is also looking for qualified agents, whether you have 20 years experience or just received your license. Contact our office to start your real estate career with SI Real Estate. You will see that we are “Global Real Estate in Every Way”.

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Strong Rebound in Pending Home Sales

Pending home sales saw a jump of 10% in October which is a positive sign that the real estate market is stabilizing, according to a December 2, 2010 National Association of Realtors® article, Strong Rebound in Pending Home Sales. Housing affordability can be credited to drawing buyers to the table and causing this rebound in Tampa, Florida and across the nation.

According to Lawrence Yun, Chief Economist of the National Association of Realtors®, “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market is clearly in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011.”

Yun went further to say, “A return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery.”

Another interesting indicator is that Fannie Mae and Freddie Mac reports show very low default rates on new mortgages, much lower than the default rates during the 2002-2003 housing boom. All of these factors combined show the real estate market is on the road to recovery. This is a welcomed report for not only the real estate market, but the overall economic health of our country.

Call SI Real Estate today at 813.631.5144 for more details. SI Real Estate, Tampa is your full-service real estate boutique who can assist you with any real estate needs you may have. We provide the complete spectrum of real estate services, utilizing our vast real estate experience and extensive Tampa Bay area knowledge to meet the needs of our buyers, sellers, relocations, investors, landlords, and tenants. After all, SI Real Estate is “Global Real Estate in Every Way!”

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Real Estate Outlook is Positive as Sales Jump

The real estate outlook is positive in Tampa, Florida as well as in most parts of the nation. A ReatlyTimes® article titled Real Estate Outlook: Sales Jump states “Single family sales jumped by 24 percent seasonally-adjusted basis over May, and were 19 percent above the totals for June 2009. The sales rebound verged on spectacular in the Northeast region – up 46 percent over the prior month. Gains were 33 percent in the South, and 21 percent in the Midwest.”

“Bob Jones, chairman of the National Association of Home Builders, called the latest sales figures ‘an encouraging sign’ that housing activity is springing back from the expected deep lows experienced after the credits expired.”

Sales were not the only positive indicator. Home prices were 1.3 percent higher compared with the month before, but they gained 4.6 percent year-over-year, which is a very encouraging sign that sales and home prices are both on the upswing. This is good news for the overall outlook that the real estate market is experiencing stabilization.

Another positive sign is that mortgage applications to buy houses continue to increase. “The Mortgage Bankers Association reported a 2 percent jump in purchase applications last week.”

The Greater Tampa Association of Realtors recent statistics support this overall outlook as the Tampa Bay area real estate market continues to see positive signs of improvement as 2,069 properties sold in June, which is the best month for sales since the December of 2006.

Record low interest rates, stabilization of housing prices, and an increase in mortgage applications are helping to lead to the recovery of our Tampa Bay real estate market. This is good news that SI Real Estate is happy to share with you. For more real estate news, call us 813.631.5144, e-mail us at YourHome@SIRealEstateInvestments.com, or visit us at www.SouthTampaRealEstate.blogspot.com.

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