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Tampa Real Estate

Mar 26

Tampa Real Estate - Mixed Signals

by Mary Teresa Fowler
Search Tampa Homes for Sale

Tampa real estate is sending out mixed messages. Maybe part of the reason is due to interested investors. They are sizing up the potential for profit in terrific Tampa.

Rising Home Sales

No doubt, home sales are rising – an increase of 16% from 2010 and 24% from February. Yet according to data from Florida Realtors, distressed homes prevented the median sales price from being higher than $111,110 last month. Within the Tampa-St. Petersburg-Clearwater region, 2,375 single-family, existing properties sold in February, Only 2,050 sold in 2010 and a mere 1,911 were purchased in January 2011.

Condo Buyers and Sellers

Condo sellers in Tampa, however, might not be too pleased with the current state of the real estate market. Yet condo buyers tell a different story – especially if they are investors looking for that foreclosed property for renovation and a quick sale. Keep in mind that the median sales price for condos in the Tampa metro region is $65,100. That price is a drop of 27% compared to the same month in 2010. Sales reached 33% (947 purchases) during February.

Home Buyers and Sellers

Spring tends to be an active time for home buyers and sellers. Will that scenario, however, prove true in Tampa during spring 2011? Most likely, people will be buying property in Tampa during the coming months but the purchases might be distressed real estate in many instances.

At the beginning of spring, Tampa might not see as many traditional home buyers looking for that dream house. Instead, more investors will be eyeing the city’s real estate for bargains. Investor interest will drive the sales numbers but traditional buyers should return as spring turns into summer

Obviously, buyers looking for their dream home are looking at a different category of home than investors. People looking for a home (rather than an investment) want quality houses (often new construction) in stable neighborhoods. Home buyers are willing to pay for that perfect home.

They will pay even more than the median price if it means a nice home in a good neighborhood. Of course, no home buyer wants to overpay for their home. At one time, appraisers would not use foreclosures as comparisons but circumstances have changed in this current economic climate - especially in certain areas.

Interested Investors

Although investors drive sales numbers to confusing heights, they signal that prices are almost at their lowest. As well, investors hang around when banks are releasing foreclosed homes into the market.  It remains to be seen how many foreclosed and bank-owned homes will come on scene. Tampa homes are selling though and investors are huge players in the market.

Home sellers might not be too thrilled with investors looking for the lowest price. Yet investors fulfill a role in the real estate market. Think about the low prices and the $1,000 rise in median home price during February. As spring progresses, investors’ enthusiasm should transfer to traditional home buyers in Tampa.

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TBO.com; Tampa home sales rise as investors wade in; Shannon Behnken; March 21, 2011

Image courtesy of lennygurvich.net

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