Real Estate Prices and Values: Gap Widening Between Listing & Sales Price

-
So far, 2012 has provided countless signs of an enhanced real estate market. We are constantly being reminded of the historically low mortgage rates, median sales prices rising, and buyers’ confidence higher than the last several years. What we may be missing out on are the real life examples of how this impacts an agent and buyer relationship. Here are some valuable bullet points that will give you a real estate reality recap!

Listing price: - Usually properties do not sell for this amount. - Listing prices are most often a tool to trigger showings and offers. - Average listing price in Tampa is: $308,425 / Median Sales Price: $114,505, an impressive 14% increase from last yr. (updated mid-July) - Here is an example of a real life Tampa transaction: Recently one of our brokers sold a condo at $172K. Listing price was $155. Multiple offers were submitted. Read more about this trend here.

Comparative Listings: - Investors decisions based on ROI - Homes that were purchased at the beginning of 2012 will not yield the same return rate if you were to purchase it now. A townhome an investor client purchased last year at $80,000 are now selling for $126K. Be sure that the bottom of this real estate market was quite some time ago. - Median sales price last year in July were $99,000. July 2012 prices are now upward to the $115,000 range, and climbing as supply is diminished.

Other factors leading to a more stable real estate market: - Building permits for new homes has hit the highest number in 4 years - Lowest supply of homes for sale since 1963 (144K in June 2012) - Fewer foreclosures are making up the bulk of the real estate sales.. Excellent news. - All 20 cities that the S & P home price index tracks are seeing increases, including Tampa!

Comments

Post a Comment

Popular posts from this blog

Featured Community of the Week – Beso Del Sol in Dunedin, Florida

-
Image
Can you imagine waking up each morning to a majestic view of the sparkling Gulf of Mexico waters? This all-inclusive resort condo community in Dunedin, Florida provides a perfect waterfront retreat. Situated directly on the Gulf, panoramic waterfront views overlook the St. Josephs Sound and Honeymoon Island, creating a tranquil setting that is far from the ordinary. Condo and community features include: · Fully furnished, all-inclusive studio, one and two bedroom units · Flat panel TV’s, stainless steel appliances, and granite countertops · Two waterfront heated swimming pools and hot tub · Fully-equipped fitness center and bicycle rentals · Onsite property management and housekeeping · Boat slips · All utilities included in HOA fees · Castaway Tiki Bar onsite with weekly entertainment Beso Del Sol Resort offers three wonderful floor plans to choose from with prices starting in the mid $100,000’s. Whether you are looking for a real estate investment, weekend retreat, vacation property...
Read more

Real Life Real Estate...New Construction vs. Foreclosure

-
Image
A hot topic for potential homebuyers is, should I look Foreclosures, existing older homes, or New Construction? The hype lately seems to be on Short sales and Foreclosures. Bank owned properties are being snatched up by cash investors and we hear of bidding wars everyday in Tampa over bank owned properties. Investors have money to spend, and no desire to occupy the property personally, they can fix any issues that arise with no problems. It is very enticing for a buyer to see large discounts foreclosed and short sales but what else does a buyer need to consider when deciding on purchasing a home? SI Real Estate has helped three clients purchase a new Construction home in the last two weeks. What made these buyers decide purchasing a new home was better than foreclosure and existing home options? There is a great website being advertised by Lennar homes, “Buying a New Home vs. a Foreclosed Home” . This website highlights advantages of purchasing new construction. Buyers need to cons...
Read more

Tampa Real Estate Hot Topic: Mortgage Rate Predictions for 2013

-
Image
Last week we discussed the importance of understanding the effects that rising home prices have on mortgage rates and the buying power of consumers in the market to both buy and sell.   The recent mortgage rate activity has caught the attention of the nation, and of course our local Florida real estate market.     Since May 2013, the average rate on a 30-year mortgage rose from approximately 3.3% to 4.87% according to Freddie Mac.   Executive vice president of McCue Mortgage, Kim Neilson, states that the market hasn’t seen an increase of this magnitude in years.   Despite the recent jump, however, rates are expected to remain steady between 4-5% throughout the remainder of 2013.   There are two main reasons for this situation on the market. Firstly, the Federal Reserve chairman Fred Bernanke indicated in mid-June that he might slow down the purchase of mortgage-backed bonds. These were designed to strengthen the secondary market for lenders and ...
Read more