The price per square foot has continued to trend downward as the homes with larger square footage have sold at an adjusted value.  The overall inventory has remained constant, because the absorption of Tampa homes for sale in 33606 has been at an even level with new listings entering the market.  The average days on the market has continued a downward trend to its current overall average of 100 days.  As this zip code includes some very high end luxury homes, it possesses an inventory in a number of price ranges.  This inventory is more than adequate to fit all buyers needs in the months ahead.

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Although this is only one facet of the market as it relates to gauging trends, it does show that the inventory level of homes for sale has stabilized.  In addition, adjusted pricing has taken hold and property owners selling homes are now able to adjust pricing strategies with more confidence.  All of these factors can help in the process of developing sales.

The inventory of homes for sale in St Pete, although it had increased in first quarter, is now stabilizing and starting a slow steady decline.  The St. Petersburg market through the balance of 2010 will continue to experience further correction.  Ideally, this year the balance between inventory and price will compliment the number of buyers in the market, which will make a more even approach for both parties.

With the median price hitting a number significantly lower than Tampa, St. Petersburg may find that inventory will continue to decrease as many buyers become educated on the opportunities available within the market.  This is especially true considering many are now aware of how to meet their purchasing goals with continued availability of low interest rates.

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The average days on the market for homes has fallen by at least 30 days from its high of 210.  Now at approximately 170, this pace is reflective of a consistent drop in availability in the inventory of Tampa homes for sale.

The market flourished in the first quarter, with sales supported by incentives for first-time home buyers and a large inventory of short sale homes.  As these properties are purged from the inventory of homes in Tampa, and a more consistent and seasonal trend takes hold, buyers and sellers will find a more even balance though the rest of the year.

The inventory of Tampa luxury homes has been affected by the improvement of sales above $1,000,000, which has risen by 15% over 2009.  We are pleased to see that the strengthening of the market is providing the opportunity for sound decisions for Tampa homes for sale.

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Today’s buyers are well educated about the market.  The state of real estate is constantly in the news, and it’s impossible to avoid.  Buyers out in the market are justifiably nervous, very cost-conscious, and do much more research on a potential purchase than they would have a few years ago.  High prices are often a signal for unrealistic or unmotivated sellers, and buyers in today’s market don’t want to waste their time on such a situation.  There is no longer the urgency to buy Tampa real estate that there was a few years ago, which means that potential home owners will not overpay.

“The savvy buyer has done research is very aware and cautious when they see a property on the market for an extended period of time,” says Dave Traynor of Smith & Associates Real Estate.  “They will also know that the extended time on the market is a result of the home being over priced.”

If you’re going to be listing your home for sale, make the most of the market from the beginning.  Price competitively.  The old strategy of padding the list price of a home to leave room for negotiating no longer works.  The home should look its best, and be priced competitively in order to catch a buyer’s eye and entice them enough to make an offer. “Many agents have a list of buyers anxiously waiting for new homes to hit the market,” says Traynor.  “When they are priced right initially, those homes have been seen to go under contract within the first week.”  So, take the best advantage of the Tampa real estate market possible, and get your home priced right from the start.

Want a professional analysis of what the right price is for your home?  We would be happy to provide a free market analysis for you.  Please request one here.

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Good news for the Tampa Bay area comes from two important metrics.  First, more homes sold in the Tampa/St. Petersburg/Clearwater area than any of the other major MSA’s in the state.  Also important was that our area was among those with the lowest percentage of decrease in the median sales price.  We experienced a 1% decrease while areas such as Orlando, Ocala, Daytona Beach, among others are experiencing losses in the median price of over 10%.

Things continue to look up for owners of Tampa homes for sale!  For more in depth information, please refer to the complete press release found here.

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FOR SALE: The developments for sale on which updates were given included Skypoint, Ventana, The Towers of Channelside, The Slade, and The Plaza (Harbour Island).

Skypoint, listed by Smith & Associates Real Estate recently sold out. The building is now owned by 380 individuals, some of which have resale properties available on the market.  To view units available for sale, please click here. This property is particularly attractive since FHA & VA financing options are obtainable for buyers.

Ventana, located in Channelside, has seen an increase in sales and currently only 20 homes are remaining out of the original 84. The value of the homes averages $150/SF, which means that 1,500 SF condos are ranging in the mid-to-high $200′s.

The Towers of Channelside has gone from bankruptcy to receivership, which means a whole new sales program has been developed. The prices are low, and the development has an in-house financing option that is very attractive to buyers. This is the only high rise in the Channelside area, and it offers 3 bedroom homes with views of the water. The prices are competitive at $185/SF, and the interior finishes include granite countertops, stainless steel appliances, and wood/carpet flooring.

The Slade was recently completed and closings are underway. 1 bedroom units start at $140,000 and 2 bedrooms start from the $200,000′s.

The Plaza is the newest luxury building in Harbour Island.  The development has sold 105 units out of its total 138. The development is immaculate from top to bottom, and units boast all of the amenities that you might find in a resort.

CHANGE OF PLAN: FROM SALE TO LEASE

There is also plenty of opportunity to rent in new construction developments in the Downtown/Channelside area. Grand Central at Kennedy was one of the first condominium projects to focus its attention on leasing. The building has the most total homes at 392, with 192 being owned by individuals. The other 200 units continue to be rented by the developer and the community stays heavily occupied. They have added a new fitness facility, Power House Gym, in the community’s retail area.  As a whole, it has been very successful in the Channelside District. The Place is another development that has a mix of individual owners and developer leases – though it leans more towards a higher quantity of leased units. The rental market is strong in Channelside and as a whole units are 95% occupied. Rental rates between the two buildings mentioned are in the range of $1.50/SF, resulting in leases ranging from $1,000 – $2,000/month.

FOR RENT: APARTMENT COMPLEXES

Seaport, located North of Kennedy close to the Ybor corridor, is a lower cost option for downtown apartments. The property, which offers stained concrete flooring and high ceilings, is 80% occupied.  Rental rates at Seaport, and rental rates average $1.20/SF.

Element, the sister development to Skypoint, is the only high rise rental building in Downtown. This is one of the more expensive rentals in the area, but the building offers full service amenities and views that can not be matched by other possibilities in the rental market.

All of these new developments support the Downtown residential life which supports and will help to continue to grow a great retail mix in the area. As downtown revitalizes, the key component will be the residents in the buildings exploring their community and becoming Tampa’s urban pioneers. Channelside continues to be on the city’s radar, and will see vast changes over the next few years. Downtown continues to receive attention as well, and has great new additions like the History Museum, Tampa Museum of Art, and the beautifully redone Curtis Hixon Waterfront Park. We encourage you to check out what is happening downtown!

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Pinellas County home sales in the luxury market led Hillsborough with 35 sales above $1,000,000 recorded through the Multiple Listing Service (MLS) with an average sold price per foot of $366.  “It has become apparent that starting in January of 2010 buyers recognized the value luxury homes on the market,” said Robert Glaser, President & CEO of Smith & Associates Real Estate.  “This pushed sales at a pace not seen in the last 3 years.”  In addition, the number of sales over $1,000,000 currently pending in Pinellas County is 33.  This does not include a number of luxury condos currently under contract at 400 Beach Drive and Ovation which will close in the next 60 days.  Looking back to the month of April 2009 comparatively there were 11 pending sales – the trend up is very significant. One enclave of luxury properties seeing this increase in activity is the St. Petersburg neighborhood of Snell Isle, which has seen 4 recent luxury closings.  Brightwater Estates has also seen 3 closings in first 3 months of the year.

In regards to Hillsborough County home sales, there were 22 homes sold above $1,000,000 during the first quarter – the highest sale price being $4,500,000.  The average sales price of the closed listings was $1,755,000 and the average price per square foot was $291.  The pending activity for April 2010 shows 30 homes presently under contract, compared April 2009′s 7 transactions closed over $1,000,000.  “Today’s luxury buyer will be able to enjoy best values and prime locations,” says Glaser. “Also, depending on property condition buyers will find that the market has settled into a ‘new’ value range that is in line with overall economic conditions.”

For more information on the beautiful luxury properties for sale in our Signature Collection™, please feel free to click here.  If you are interested in selling a luxury property and would like to know more about our marketing services for The Signature Collection™, please click here.

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Short sales constitute a good percentage of current Tampa real estate listings. Anyone who has ever been involved in a short sale knows that the short sale request process is like entering the wild west –  the rules change day by day and you never know what to expect. There has been a public outcry for regulation in regards to short sales since the Tampa real estate market (and the rest of the country’s) bubble burst.

In response, the federal government has released the Home Affordable Foreclosure Alternative (HAFA) Program which will take effect on April 5, 2010. HAFA is different from last year’s Home Affordable Modification Program (HAMP), in that HAMP was intended to help people retain their homes, while HAFA is intended to help people short sale their homes. HAFA offers guidelines by which homeowners can sell their homes for less than what is owed on the existing mortgage(s).  The program is supposed to streamline the short sale request process by using standard processes, documents and timeframes. In order to attract participation from lenders, lending institutions are offered financial incentives to follow HAFA’s guidance and use its standard forms. Nevertheless, the program is strictly voluntary and lenders do not have to follow the US Treasury Department’s promulgated guidelines. It is important to know that HAFA is not a law.

In order to be eligible for the HAFA program, borrowers must have applied for the HAMP program and their application was either denied or they were unable to keep up on the modified mortgage. The HAFA program utilizes documents that were already collected as part of the mortgage modification program and permits homeowners to get pre-approval for short sales. This is an improvement to the standard short sale because typically, lenders will only consider a short sale request if there is a buyer for the property. The HAFA program is limited to loans that were originated prior to January 1, 2009 on the borrower’s primary residence, which do not exceed $729,750 and which causes a financial hardship because the monthly payment exceed 31% of the borrower’s gross income.

Whether this new government program will help to move short sale homes in Tampa and thereby improve the Tampa real estate market remains to be seen.

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With so many Tampa homes for sale, Smith & Associates is excited to apply the knowledge gathered at this conference to improving the services available to our clients – which will in turn increase visibility and sales.  This year’s theme, ‘Leading The Revolution’, featured an intense schedule with well-known speakers in a variety of specialties.  The topic was close to our hearts as a reminder of our goal to continue to lead the recovery of the market in Tampa Bay.

The Market Action Index for Tampa homes for sale is up significantly over 2009, shown in the graph below.  Though activity typically slowed towards the end of the year, the 2010 uptrend is already being seen.  With the information gathered in Vegas this past week, we look forward to continuing in our contribution to the upswing in these numbers in the coming months.

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Long-term mortgages rates moved lower again this week, hitting the lowest level in five weeks.

Freddie Mac‘s weekly report says the average 30-year fixed-rate mortgage was 4.91 percent in the week ending Nov. 12, down from 4.98 percent last week. Rates on 30-year mortgages have been below 5 percent for five of the last seven weeks.

A year ago, 30-year mortgages were averaging 6.14 percent.

A 15-year fixed-rate mortgage averaged 4.36 percent this week, remaining below one-year adjustable rate mortgages, which now average 4.46 percent.

“Mortgage rates eased further over the week, helping to promote an affordable home-purchase market and stimulate refinance,” said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. “This comes at a time when house price declines are moderating and consumer demand for prime mortgages at commercial banks has picked up.”

The National Association of Realtors this week said third quarter housing prices were down an average of 11.2 percent from a year ago, but 20 percent of the top metropolitan ares saw positive annual growth.

Sales continue to rise, with third quarter existing home sales up 11 percent from a year ago.

Tampa Bay Business Journal – by Jeff Clabaugh Washington Business Journal

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