Tamp Bay Genuine Estate Industry Update For June 2011

Article by Jason Beal

The Greater Tampa Association of Realtors Market Report shows a total of 1958 properties (single family homes, condos, villas, and townhomes) sold in the month of June, down only 1% from last month. However when compared to June of the previous year this represents a decline of nearly 11%. Properties less than ,000 continue to take up the bulk of the market as investors swoop in to buy up these deals. They accounted for 17.5% of sales or 342 properties. Properties priced between 0,000-9,999 represented 9% or 173 sales. The lowest segment to move were homes priced between 0,000-9,999 with three units sold or .15% of market share.

The year to date is showing an upward trend, increasing 8% from last year overall. Single family home sales are up 5%, while condo sales also increased 22% from the previous year. The average list price was 3,918, while the average sales price was 4,927 and an average of 118 days on the market. This represents a 95% list to sales price ratio. There is 5.8 months of inventory on the market, which is the lowest amount we’ve seen in years now. This is encouraging news and certainly represents a downward trend in regards to inventory. As a comparison, at the start of the year we had 11 months of inventory.

However we still have our fair share of short sales and foreclosures in the Tampa area. Yes, they are putting downward pressure on pricing and that can be very disheartening for sellers. However I believe in many areas we have broken through the price floor; the worst is over. I also tend to think, in some areas, we are actually undervalued at this time. There is not going to be a “V” typed recovery, especially in relation to pricing. No it’s not almost over. We have plenty of inventory to clear out and this could easily take a couple more years.

That being said I’m seeing many positive signs trickle in: Construction has resumed on once abandoned developments , investors are coming from the sidelines (often all cash) to buy properties, and brand new communities are being built. I believe that these events, paired with the slow purge of distressed properties, will help push our market back towards an equilibrium.

When listing or buying a property it is essential to have a Realtor who knows the community, understands market data and can price a home correctly.

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