Wednesday, March 3, 2010

Housing Inventory Drying Up!

An interesting thing is happening in the Tampa Bay real estate market. Have you tried to put a contract out on a house that is unbelievably priced only to find that there are already several offers on the table? If so, you are not alone. Housing inventory is drying up. The drastic dip in supply is due to several factors. With fewer foreclosures, bargain basement prices on homes for sale, and incredible tax incentives being offered, investors and first-time home buyers are gobbling up Tampa housing inventory. Current demand has definitely reduced available housing supply.

The National Association of Home Builders article Slow Recovery May Be Leading to Serious Housing Shortages addresses this saying “NAHB economists project that the industry will need to deliver 16 million homes over the next 10 years to keep pace with the demand. As the excess inventory is worked off, which is likely by the end of 2012, the long-run demand for new housing – based on population growth, immigration and the replacement of losses from the housing stock – will average approximately 1.5 million single-family and 300,000 multifamily units annually, or about 1.8 to 1.9 million starts.”

No matter what the media may say or do, the dream of homeownership is alive and well in Tampa, Florida. Don’t be fooled by thinking that nothing is happening in the real estate market! Homes are receiving multiple offers and true transactions are taking place every day. Investors, first-time home buyers and move-up/repeat home buyers are abundant, and they are taking advantage of this unprecedented real estate market. Maybe you should think about your real estate goals and options.