Friday, December 17, 2010

Tampa Bay Real Estate Market in 2010 The Year in Retrospect

This has been an exciting year in the real estate market in Tampa, Florida. The real estate market moved at a fast pace in the first half of the year when the federal government decided to extend the 2009 Homebuyer Tax Credit. Originally, the tax credit was to end on November 30, 2009. However, the 2009 First Time Home Buyer Tax Credit was extended so that those with a binding contract on or before April 30, 2010 and closing on or before June 30, 2010 would be able to take advantage of this fantastic opportunity to become a homeowner. This fueled the real estate market in a big way.

Another major force in the real estate market this year has been the abundance of REOs (bank owned) properties that were for sale on the market. These properties sold just about as quickly as they were listed. Not only did they sell quickly, but they received multiple offers which caused an interesting bidding situation for all involved parties. This resulted in a serious reduction in the housing inventory which has been important to bringing pricing stability to the real estate market.

One cannot look at the past year without mentioning the force and affect of foreign investors on our market. International investors swarmed to buy properties in Florida and across the nation. The bloated inventory of homes combined with high unemployment and a weak currency created an incredibly attractive buyer’s market for the savvy international investor. Rather than investing in the stock market, many international investors purchased property and reaped immediate financial rewards for doing so.

Several factors have been at play in the real estate market in 2010. Tax incentives for first time home buyers and move-up/repeat home buyers, record high affordability in housing prices, near record low mortgage interest rates, and an influx of foreign investors, all combined have been and will continue to be critical to the housing and overall economic recovery.

SI Real Estate has had a fantastic year in 2010 and is excited about the upcoming year and opportunities in the real estate market. Are you interested in getting a piece of the real estate action? Give us a call at (813) 631-5144 any time.

Wednesday, December 15, 2010

Strong Rebound in Pending Home Sales

Pending home sales saw a jump of 10% in October which is a positive sign that the real estate market is stabilizing, according to a December 2, 2010 National Association of Realtors® article, Strong Rebound in Pending Home Sales. Housing affordability can be credited to drawing buyers to the table and causing this rebound in Tampa, Florida and across the nation.

According to Lawrence Yun, Chief Economist of the National Association of Realtors®, “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market is clearly in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011.”

Yun went further to say, “A return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery.”

Another interesting indicator is that Fannie Mae and Freddie Mac reports show very low default rates on new mortgages, much lower than the default rates during the 2002-2003 housing boom. All of these factors combined show the real estate market is on the road to recovery. This is a welcomed report for not only the real estate market, but the overall economic health of our country.

Call SI Real Estate today at 813.631.5144 for more details. SI Real Estate, Tampa is your full-service real estate boutique who can assist you with any real estate needs you may have. We provide the complete spectrum of real estate services, utilizing our vast real estate experience and extensive Tampa Bay area knowledge to meet the needs of our buyers, sellers, relocations, investors, landlords, and tenants. After all, SI Real Estate is “Global Real Estate in Every Way!”