Friday, January 25, 2013
Real Estate Updates: What’s Up, What’s Down?
We are constantly being reminded about the condition of the real estate market, both nationally and locally. No matter which media outlet you choose to ingest, you are most likely seeing, hearing and wondering what is up and what is down, and more importantly, what it means for you. Here is a brief recap of some figures to keep in mind.
We have heard this for the last few months of 2012 and will continue to hear that home building is on the uptick. Up almost 40% from the previous year, home start are on the rise. At the most recent International Home Builders Show in Las Vegas, the National Association of Home Builders Chief Economist, David Crowe said, “Nearly every measure of housing market strength – sales, starts, permits, and builder confidence – all have been trending upward in recent months and we expect to see steady growth to continue in 2013.”
Home prices also continue to rise. On a national level, we ended up with a 5.6% increase from last year. At a local level, Tampa, Florida has experienced a hefty 22% increase in homes median sales price, while the average price per square foot edged up almost 50%! If prices are up, one can imagine that more home owners are finally willing to sell. The home purchase index was 26% higher last week compared to this time last year. Tampa has seen some of the largest gains in the past year as home prices, home sales, and home building all continue the upward trend.
The reason for some of the increases mentioned above are partly due to the very low home inventory both nationally and right here in our Tampa market. Home inventory is down 17% from this time last year! The national home inventory level currently shows a decrease of 26.6%. This creates multiple offer scenarios and allows sellers to hold a bidding war, which is the type of war they sure do appreciate waging.
Florida felt the brunt of the bubble burst and since then has had a high volume of short sales, REO’s and foreclosures. Luckily for both homes sellers and buyers, the time it takes to complete a short sale is getting shorter and shorter. Freddie Mac now estimates that the time to complete a short sale will decrease by 50% to 75% as a result of steps the government enterprise has implemented in order to speed it up. This also means a diminishing rate of foreclosures which will keep adding to the value of homes.
SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”
The real estate market is clearly making a turn for the positive. Call us today to discuss how you can keep up with the changes and maximize your real estate potential.