Friday, November 20, 2009

Tampa Bay Real Estate Market Forecast - Home Sales Expected to Increase

Over the past few weeks many news sources have released predictions for strong real estate stabilization in 2010. A recent article from NuWire credited the expansion and extension of the first time home buyer tax credit for the predicted stabilization and home sales increase. According to NuWire recent article, “Home Sales to Increase in 2010”:

"After more than a three year downturn in the hardest hit areas of the nation, some markets have experienced slight rebounds, prompted by the first time buyers' tax incentive and low mortgage rates. But higher price ranges have been hindered in their recovery. However, momentum should gain strength in the second half of the year with expected improvements in mortgage lending and make strides towards stabilizing in 2010.

A series of interest rate cuts taking mortgage rates to near historic lows are one of the Fed's attempts to re-stimulate the housing market. But record foreclosures are producing a market that threatens to keep home prices at low levels for years to come. More than 19-million vacant homes sit empty in the U.S., much of which is an inventory that will have to be absorbed by home buyers before markets fully stabilize.

Still, signs of a recovery in housing are showing promise. As we maintained last year in our annual national forecast, improving conditions, however, do not signify that housing inflation or appreciation will develop in most areas for a number of years. The recovery will be a long haul."

Tampa’s real estate recovery is underway. We have seen signs of real estate market stabilization throughout Tampa Bay, with appropriately priced Tampa homes spending fewer days on market, multiple offers being placed by first-time buyers and foreign investors, and sharply discounted homes being quickly absorbed.

We have even seen an increase in interest from Tampa home owners who were previously unable to sell their homes, now more interested in listing their property for sale. It surely is going to be a long haul but with positive signs becoming more and more prevalent, we are sure looking forward to what 2010 may have in store for the real estate market!

Tuesday, November 17, 2009

NAR Predicts a Positive Real Estate Start to the New Year | 2010 to See an Even Stronger Market Stabilization

“Home sales will increase 15 percent to about 5.7 million units in 2010” stated the National Association of Realtors Chief Economist Lawrence Yun late last week during the 2009 NAR Conference and Expo. Yun credits the popular first-time home buyer tax credit for the surge of home sales in the market, with the expectation that the extension to the program will continue to drive an increase in real estate sales.

NAR reported that this year’s first-time home buyer tax credit brought 400,000 first-time buyers into the national real estate market who may not have purchased a home otherwise. The incentive was successful in driving home sales throughout the U.S. The influx of buyers tightened the inventory of starter homes and helped reduce the fear shared by many current homeowners and sellers of continued price drops.

According to the NAR, this positive cycle is expected to continue into 2010 with the extension and expansion of the tax credit, which includes a new credit for repeat buyers and an increase in the income limitations. The tightening inventory at all price points will help improve the real estate market performance by bringing supply into better balance with demand.

New home sales, which make up approximately 10 percent of the market, is expected to continue at somewhat suppressed levels - about 550,000 units, mainly due to builders scaling projects back because financing has not been readily available. However, it is predicted that new home sales will see more of an increase in 2010 then they did this year, with signs of stabilization continuing in the market.