Monday, September 28, 2009

Tampa Continues to Work towards a Steady Real Estate Market Stabilization

The backlog of foreclosed homes hitting the market is slowing the housing recovery in Florida. However, the Sunshine State is still proving its resilience with improving home sales for more than a year and is starting to show signs of a steady stabilization.

Tampa area home sales are rising as the inventory of foreclosures is being absorbed by new home owners and those seeking vacation homes in the Florida sunshine. But the pattern of sales has been erratic with some months recording higher sales only to decline the next.

The $8,000 federal tax credit for first-time buyers is helping to move the real estate inventory in the Tampa Bay area. There is clearly a sense of urgency and buyers are acting now and purchasing their dream homes. A large portion of sales are foreclosed properties and new construction that bankers and builders are slashing the prices on to move the inventory before more foreclosures and distressed properties hit the market. The sooner Tampa’s low priced properties are absorbed, the sooner we will see a steady stabilization in its real estate market. Recovery is just around the corner.