Friday, June 12, 2015
Real Estate Pulse: Tampa’s Rental market is on fire! Act on it or the property will be gone in a flash!
Real Estate Pulse: Tampa’s Rental market is on fire!
Act on it or the property will be gone in a flash!
SI Real Estate is a full service real estate boutique in Tampa Bay, including property management. We have seen a significant increase in rental activity since February, 2015. As the year has progressed, so has the interest in Tampa’s rental market! Right now, our agents are finding that rental listings are gone in a New York minute. We are receiving calls and emails from an abnormal amount of new residents relocating to our area, causing the demand to drastically outweigh the supply.
This trend has not gone unnoticed by property developers in the area especially our urban core. They are purchasing land and building multifamily high end rentals, rather than luxury apartments or condos for sale. Jeff Vinik has been at the forefront of this new demand. Starting with revitalizing the Channelside District. The city of Tampa and developers are adding exciting urban attractions such as the popular Tampa Riverwalk. "I think people are buying into the story now that downtown Tampa will become a real downtown," Mike Davis, an executive director with Cushman & Wakefield of Florida Inc. We are noticing the same effect, with interest in areas/price points that have not been popular in the past for our local rentals.
Here in Tampa, rentals have always been available as long as you have a fair budget. In SI Real Estate’s experience lately, this has not been the case! The vacancy rate of the rental market here has been pretty average the past 15 years, until now. Our vacancy rate has hit a 9 year low this year, 4.9% of all apartments here are vacant. That figure is lower than all 19 other southeastern metro areas that the company tracks. Now we know why we are having a tough time scheduling showings for rentals! They are gone as soon as they come up online or on the MLS. Our landlords are using this high demand as a great reason to bump the rent pricing back up to pre-recession rates. Another market correction underway… Possibly the final stretch!
Apparently developers want in on all the action the rental market has been seeing. “Data from Vertica Partners LLC in Tampa shows more than 10,000 potential units — projects in various stages of development, between downtown Tampa, South Tampa and the Westshore area.” These areas are the crème-de-le-crème and seek the highest rent in Tampa Bay. They must be listening to market experts who are echoing that the vacancy rate will stay this way for the next year and a half. Rent prices will also keep rising according to industry leaders. By Real Data's figures, “the average monthly rent for a two-bedroom bay area apartment this year is $1,046 — $40 a month higher than a year ago and $176 higher than in 2010. Rents are expected to rise another 2 to 3 percent annually, the most in the Southeast, the report says”. SI Real Estate will keep an eye on the market while we remain incredibly busy putting families into homes, rentals and buyers! Are you in?
Friday, May 8, 2015
Big gains in March Home Sales
Florida and National market is heating up in 2015
SI Real Estate has been monitoring and reporting the increased activity in the housing market this year. Last month we reported about skyrocketing first quarter new home sales. This month all of the home-sales reports, including both new homes and resale homes echo those same sentiments.
Some of the markets reporting sharp rises in March 2015 home sales include the following: Minneapolis, Washington D.C., Atlanta, San Antonio, Jacksonville, Houston, and Seattle. The Real Estate market in Florida has been scorching hot, especially in Miami, Boca Raton and Tampa Bay. Our neighbors to the North (Georgia) are also seeing the same trends. Nancy See, of Atlanta Fine Homes says “I’m seeing a lot of multiple-offer scenarios when a house is well-priced… Buyers are having to act very quickly to get the house they want. It’s almost like a buying frenzy”. This type of great news has not been reported since before the recession!
Florida’s housing market in particular has been strengthening all year long. March was the best month yet. Housing data released by the Florida Realtors Association shows more closed sales, higher median sales prices, increased pending sales, and shorter selling times for houses on the market and increased seller / listing activity. Closed sales of existing single family homes statewide totaled 24,811 last month which is a 24.6% increase over March of 2014.
Our personal experience here at SI Real Estate reaffirms what we have been reading. We are doing MLS searches for clients and finding fewer home available to show simply because of how fast homes are being sold or active listings going pending. Even the rental market is on fire! Yesterday one of our agents had a list put together for a client of houses available for rent in the area. By the time they had left the office to go to view properties, 4 of them were no longer available!
Wednesday, April 29, 2015
SI Real Estate has been watching the market in Tampa Bay closely this year. We have reported several times since the beginning of 2015 that the market is on the upswing, with statistics to back it up. Hillsborough County just released more first quarter data, and the real estate market is continuing to surge! Housing data released Monday by Florida Realtors showed 3,213 single-family homes sold, 28.6 percent more than February 2014.
Buyers are finding that inventory is still thin, causing prices to rise. The Tampa Tribune interviewed Thomas O’Bryant, executive director of the Greater Tampa Association of Realtors. “Home prices are going up,” he said. In Hillsborough County, the median price for a house in February was $177,000, up 7.3 percent over February 2014. “Sales of townhomes and condos also were on the upswing in Tampa Bay (Hillsborough, Pinellas, Pasco and Hernando counties) The median price was $106,400, a 12.1 percent bump” from February 2014. We are seeing more activity lately on our own listings here at SI Real Estate.
The time to buy a home in Tampa is now. Now is a great time to list your property for sale too! Interest rates are still at historic lows until the Fed meets in June. The rates will almost surely be raised when they do meet! PMI insurance reduction, steady job growth, and rising home values have activated the market and we are seeing results.
Monday, March 9, 2015
Almost everyone over the age of 20 has said the phrase “that’s it, I’m moving to Florida” at some point during their life. Usually it is said out of frustration with the weather, or another popular reason being high taxes elsewhere. In the 90’s and early 2000’s, Florida was an incredibly popular destination to move to. The younger crowds flocked to Miami or Tampa, the wealthy to Miami and Fort Lauderdale, and then the retirees to Naples or Fort Myers. Since 2007 though we have been lagging behind…. Until recently.
Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida, says Florida's economy is now solidly passing the Nation’s. Not only are we recovering fully, but we are about to start leading the pack again. Tourism is back to full throttle. Booking hotel rooms or going out to dinner is becoming a serious issue again with all of the traffic. People are spending money again and are confident the economy has stabilized.
The real estate market is one step away from being at the level it was before the market crashed. New home sales have been extremely high in 2015. "Florida ranked No. 2 in new home permits to Texas.” Why are all of these new homes being built in Texas and Florida? The answer is jobs; people gravitate to places they can afford to live and put food on the table. Florida and Texas have been adding jobs since 2013, more and more by the month. Florida's annual job growth rate has exceeded the nation's pace since 2012. Florida also just surpassed New York as the third most populous state in the US!
Tampa Bay is thriving now too. We have the 2nd ranked airport in the world, all major sports teams in the city, close proximity to Disney World, top ranked beaches everywhere you go, Busch Gardens and other theme parks and last but not least- gorgeous weather year round. The SI Real Estate team here in Tampa is seeing a lot of activity on the MLS and inventory is dwindling. Tampa Bay is the 3rd most active market in the state and has a lot to offer, just like Miami and Orlando. Anyone who is thinking of relocating, should consider Tampa. Ask us why we choose Tampa to live, work, and play. SI Real Estate will assist if you have any questions!
Monday, February 23, 2015
Earlier this year the president reduced private mortgage insurance rates. FHA loans were more attainable for first time home buyers. Home owners that wanted to refinance and reduce their monthly payments could also participate in the reduction. Now Freddie Mac is about to roll out a new appealing option for home buyers: 3% down payment mortgages coming in March! Contributing to continued Real Estate recovery and stability, the guidelines of qualifying for this type of loan will not be as loose as the guidelines from the adjustable rate mortgage disaster in 2007-2008.
Donald Layton, CEO of Freddie Mac, assured everyone that the 97% loan-to-value option will be limited to borrowers who can prove a “very good income”. Basically comforting the skeptics that this option will not be available for the average loan applicant. He also reinforced that “underwriting standards are stronger than ever”. Obviously they have learned from their past mistake of handing out mortgage loans to anyone with a paystub.
When this information was first released, many people in the industry had flashbacks to the previous real estate market bubble. On social media, comments about the credit floodgates opening and potential for inflated real estate prices were abundant. Layton insisted and reassured everyone there would not be an issue and Freddie Mac’s forecast for the amount of people to use this product is “not nearly as high as many expect”. The company is targeting “responsible, stable lending to extra-worthy borrowers” with this type of loan. Layton also said they will publicly release the actual mortgage numbers once the program gets started.
Friday, February 13, 2015
Early 2015 quarterly reports reflect heavy increase in real estate activity, especially new homes. D.R. Horton is a nationally recognized home builder and has developments throughout the United States. They have been the largest home builder in the U.S. 13 years in a row. On Wednesday, D.R. Horton reported a dramatic increase in new home sales highlighted by “sales orders increased 40% in value to $2.1 billion” from the first quarter of 2014 to the first quarter of 2015.
These numbers are significant considering that first quarter home sales are usually lack luster. What does this tell us? With the rising consumer confidence reports, buyers are investing in real estate and new homes sales are spiking. D.R. Horton has increased their land acquisitions and developed more communities recently to keep up with demand. Donald Horton, Chairman of the Board said ”our weekly sales pace has accelerated in January 2015, and we are well-positioned to capture demand in the spring selling season with our … robust community count, finished lot supply and inventory of homes available for sale.”
SI Real Estate posted a different Wall Street Journal article highlighting the sales increase of top national home builders last week. Taylor Morrison reported on Wednesday a 30% increase in its January sales from a year ago. Echoing that trend: M/I Homes, Beazer, Pulte and Ryland commented that their January 2015 sales exceeded their January 2014 sales. Jeffrey Mezger, president and CEO of KB Home predicts a strong second half of the year in 2015. “We believe the momentum of these favorable trends, in combination with our solid backlog, support a positive revenue outlook for the remainder of the year, particularly in the third and fourth quarters.” Every nationally recognized new home brand is seeing an increase in business. Real estate from the ground up has the ability to spur an economic turnaround and 2015 could be exactly what the doctor ordered.
Economic experts are expecting interest rates to be raised by the Fed after their June meetings. Right now we basically have a perfect storm for buyers: interest rates are still historically low, qualifying for FHA loans is easier due to PMI reduction, and consumers have more disposable income partly due to the drastic decrease in crude oil prices. SI Real Estate’s exposure to the market in Tampa Bay is showing us the same positive trends the builders are seeing nationally. We are getting more buyer traffic, and seeing demand for homes increase every week. 2015 is poised to be an excellent year for the real estate market!
Monday, February 2, 2015
"Latest Home Sale Data reflects strong demand for affordable homes as 2015 kicks off”
Back in 2008/2009 after the Real Estate market crashed, economic and Real Estate experts were repeatedly forecasting a 6-7 year recovery period. They all highlighted 2015 as the year we would see resurrection in the housing market. Well that prediction seems to be coming to fruition now! We are seeing many positive reports and trends from late 2014 to early 2015.
We are starting to see the rebound all around Florida, but extra activity in Tampa Bay. The excitement/enthusiasm is building here and our team here at SI Real Estate is noticing.
Normally home sales in January are expected to be lower than in July or August. However, this month the Home Sale Data is showing that buyers are confident again. Tampa Bay has surged in January with 4,700 homes sold so far. That is 23.5% better than December ’14 and 22.8% better than January of ’14. Buyers are aggressively purchasing, and homes are selling instead of sitting. From January of 2009 to January of 2015, there’s been a huge change in median sale price. Nela Richardson of redfin.com says “More people listed their homes for sale in December than in any other December since 2008. That led to a 4.8 percent year-over-year increase in total homes for sale heading into January. That much-needed inventory paired with strong buyer demand led to a solid increase in home prices in January compared with last year.” This is great news for the Real Estate market, especially here in Tampa Bay which was lagging behind nationally.
On the resale side, inventory is still low meaning that homes are selling at a faster rate than we’ve seen in quite some time. Supply and demand have finally evened out and stabilized in the past 6 months or so.
Interest rates are staying low (for now) and PMI reductions are helping more people become buyers. Our seasoned agents here at SI Real Estate are preaching that now is the time to buy, before Real Estate prices come all the way back. If you haven’t thought about buying yet, it is time to get serious. Do not be late to the party, get in while there are still deals to be found. There are many properties affordably priced and 2015 may be the last year interest rates and home prices will be this incredibly attractive.
Friday, January 9, 2015
Reduction in FHA insurance makes home buying more affordable
The President announced on Wednesday that the federal government will reduce PMI insurance premiums on FHA loans with the goal of making it easier for Americans to own a home. This is fantastic news for anyone in the market for real estate since this reduction will save home buyers an average of $900 a year. The lower insurance premium will affect 800,000 home owners immediately, as they will save on their monthly mortgage payments. This change is coming out at a great time considering all of the other positive news in the Real Estate industry the first week of 2015. Unemployment is down, gasoline prices are the lowest in 7 years and spending power is up.
In the Tampa Bay market, SI Real Estate is already noticing the enthusiasm and buzz this news is bringing to the area. Federal Housing Administration loans are largely popular for many home buyers in America. “I want to talk about helping more families afford their piece of the American dream, and that is owning their own home,” Obama said. First time home buyers are a significant building block to a healthy economy. Reducing the cost of buying a home is a surefire way to again boost the economy immediately. Qualifying for an FHA loan will be more attainable since you will have lower monthly payments to qualify for the same loan.
Lowering the cost of monthly mortgage payments also entices the switch from renting to buying. The rental market has become more expensive every year since the recession. “Apartment rents are rising at the highest pace in seven years, which means some of the renters . . . will seriously consider buying,” said Yun of the national real estate group. Yun is expressing what everyone already knows; buying a home is always a better investment than renting. Reducing the cost to own is a great way to spur renters into buying.
Here at SI Real Estate, we utilize our years of experience while working with clients in all possible situations. Our personal relationship with each customer makes us a very valuable asset in the search for a new home. No matter if you are a first time buyer or if you just want to get more information about the current market conditions, SI Real Estate will take the time to go over all the possibilities with you. We will make sure that you are 100 percent satisfied with our services. Real People | Real Results!
Friday, November 21, 2014
Since 2010, the Floridian housing market has been stabilizing, and this pattern continues through 2014. According to Florida Realtors Association, Florida’s housing market has had an increase of sales and median prices since 2013. In fact, the statewide total for single-family houses sold in October was over 21,800, an increase of nearly 18% since October 2013. Statewide, even the sales price of single family residences has increased nearly 5%.
Be assured, these are signs that the housing market is not only gaining momentum, but truly stabilizing and becoming a healthy and prosperous industry once again. According to Sherri Meadows, President of Florida Realtors, October of this year marks the 35th month in a row (nearly 3 full years) that the state wide median sales prices have rose for both single family homes, and for townhouse-condo properties.
Florida is on track to close out 2014 with tremendous momentum, more than we’ve had in years. The statewide “closed sales” for townhomes and condos reached over 9,000 just in October. The closed sales data also shows that short sales for townhomes and condos have declined 55.6% from the previous year. Short sales for single family homes have declined 47.6% from the previous year as well.
The health of the Floridian real estate economy is undeniable and the momentum seems to be unstoppable. Everything Real Estate in Florida is heading in a positive direction. With the increase of home sales and sustainable price changes in market, the Florida housing market is booming!
Monday, November 10, 2014
Tampa is centrally located on the west coast of Florida and has many alluring attractions. Everything is available to us; from the many Orlando Theme Parks to our celebrated sunny beaches. Many of our best kept secrets in Central Florida are known only to its residents. One of the popular treasures of Tampa Bay is South Tampa. Its energy and popularity have continued in full force, even during the economic adjustments. It’s easy to understand why, once you've visited South Tampa.
South Tampa is home to several mini neighborhoods. Davis Island, which is one of the most beautiful areas in the city, is about to get another make over. One example, according to the Tampa Bay Business Journal, a low-slung brick home on Davis Island is scheduled for demolition to make way for a brand new 6 million dollar mansion. This West Indies style home will be over 7,300 square feet and is slated for completion in late 2015.
Housing on Davis Island isn't the only thing that’s getting a real estate makeover lately. The Tampa International Airport is set to begin a 2.5 Billion dollar project for improvements after Thanksgiving. Rated as one of the best airports in the nation, the Tampa International Airport is awarding 250 million dollars in contracts to expand the main terminal beginning December 2nd, 2014. It has been stated that up to 7000 jobs will be created as a result of this massive expansion!
It’s not only our real estate and infrastructure that’s being reworked, it’s our laws and policies, too. Among the new Tampa Bay developments is Riverwalk. This recently added district is home to many residents and businesses of all varieties. Riverwalk now invites you to wine and dine in open air outdoor cafes, take in the skyline, the vistas, and the surrounding activity. A new city ordinance has recently passed to allow responsible adults to enjoy a cocktail while taking it all in around this beautiful and newly developing vicinity. Tampa has been very assertive in developing the surrounding area for our residents, businesses and visitors alike. Patrons of eight local and licensed alcoholic beverage provides will be able to get their drinks in a special plastic cup that bears the Riverwalk logo and has been provided by the city. The law is slated for approval by December of 2014.
South Tampa has been ranked as one of the best up and coming areas in the southeast and its energy is absolutely incredibly contagious! This snapshot of the development in and around Tampa area does no justice to the area itself. It’s something you truly have to experience.