Wednesday, March 13, 2013
Tampa Real Estate Pulse | Discounts Are Gone
As we continue to witness the real estate recovery and its effect on our Tampa market, many home buyers and investors are scratching their heads and wondering where all the “great deals” went? Tampa, Florida has seen inventory fly out the window. Along with that inventory went most of the homes that investors and home buyers were seeking out. The FNC has recently reported that the price between homes’s foreclosed value and original market value is finally beginning to close. The average price discount for a distressed property was around 25% of the homes market value. By the end of last year this number has been cut in half and now sits around 12.2%! Not much difference anymore! Buyers and investors are more and more being out bid by other buyer and investors. In many cases it is simply a price gap and offers being too low. Many Tampa, Florida communities have seen this first hand and quite a few home buyers and investors are not catching on to the trend… yet!
Single family bank owned properties and foreclosure sales made up about 18% of the real estate markets sales at the end of 2012. This is a dramatic decrease from the year prior when distressed sales were hovering around 27% of the overall real estate market activity. Buyers and investors should be cautioned that their would be “steal of a deal” is now being sold at a higher price point, and if they really want the home, they need to make serious offers reflecting today’s prices, not the prices of last year or 2011.
The Tampa Bay Business Journal repots that, “the investor market is almost gone in this general area of Tampa.” The article states that investors are “late to the party” and the lower end properties that were attractive for renting are rapidly fading away. In Tampa, Florida we have seen this bidding war activity for some time (years) now and it does not seem to be slowing down anytime soon.
If you are interested in exploring your real estate purchase options as an owner or investor, contact us today and ask how you can maximize your home buying power. If you are finding that now is the best time to sell in 5 years, you are right. Let us assist you with selling your home or investment property.
Don’t be left behind holding on to the thought that you can still get a home at a huge discount. Fact is, prices are changing, inventory is vanishing and interest rates aren’t getting any lower.
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!”