Tampa Bay Real Estate Watcher

These are the worst of times for Tampa Bay real estate sellers. Things have never been this bad. Or have they? As it turns out, Tampa Bay has seen drops in real estate prices just as significant as in recent years in the past. A boom in the 1920’s led to the inevitable collapse, except we all know that the market recovered, so the collapse could more appropriately be called a “correction.”

With every period of a huge economic growth there will inevitably be a housing boom… and a correction a decade or so later. The 90’s were great times that we all wished could last forever, but they couldn’t. An irresponsible man was elected president, and he hasn’t exactly been great for the economy with the huge debts that he’s rung up using taxpayers future earnings as collateral. Luckily, a new president will be elected within the next year, and the correction of the housing correction can begin. Hang in there, Tampa Bay real estate will be hot once again as the economy and the nation recover from the past 8 years.

Tampa Bay Land Bust Is Nothing New

Trying to sell a home in the Tampa area? You probably should have done that around the beginning of last year. A recent look at the growth of home prices across the countries shows identical trends in most markets. The growth charts look like a mountain with a gradually increasing slope on one side of the peak, and a cliff on the other side. That cliff is the housing market since early 2006.

The Tampa market is just now crashing down below 0% growth. In other words, prices have been increasing until now, albeit at a slower rate than in the previous five years. Now it appears likely that growth will go negative, so if you buy a house in Tampa now it will probably be worth less in six months. When factoring in inflation, it will probably be worth about 95% of its current value by the fall. That’s no guarantee, just the prediction of one humble man. Check back in a few months from now to find me gloating… or hiding in a corner.

Technorati Tags: real, estate, housing, market

I know many people involved with the real estate industry have wondered what the mortgage broker actually does. It’s true, they are basically an un-needed go-between for many deals. They just take loans available at a given rate and offer them for a slightly higher rate to borrowers. He gets a piece of the interest rate point spread, plus a piece of the total loan amount.

So what benefit does the mortgage broker add? Well, they are able to aid in filling out all the paperwork involved with a large loan like a mortgage. They do charge for these filings, which is another way they make money. Their benefit is really in that they bring the borrower and lender together. Lenders don’t want to advertise what loans they have to offer and sort through the applicants. Giving mortgage brokers a few points to do the job for them is more than worth it.

The borrower is worst off with the mortgage broker. They have to pay fees for the paperwork, plus they are paying a higher interest rate than the lender would be willing to accept. Just something to thing about next time you buy a home.

Technorati Tags: real, estate, mortgage, broker

Real estate prices have exploded in the past 5 years, and Florida was one of the biggest beneficiaries of that run-up. Now Florida stands to be the hardest hit state as price appreciation slows down.

Prices have continued to increase over the past year in most markets, even after the housing bubble supposedly deflated, but those prices are slowing down to a pace just above zero. That means anyone buying a house this year with the hopes of flipping it for a profit in a couple years will probably be very disappointed.

In Florida’s current market, anyone interested in buying should be thinking about the long haul. It may be a long time before you’ll be able to sell that home for a profit, especially factoring in inflation and general depreciation due to aging or damage (do not think this year’s light hurricane season will repeat next year).

Technorati Tags: florida, real estate

Despite the recent burst/deflation of the housing bubble, the outlook for Florida real estate is still looking bright, according to former Wall Street economist Richard Hokenson. Baby boomers are still arriving in droves, and the only question is whether they can get rid of their highly educated but underemployed offspring.

The Tampa Bay area has been among several hot spots in Florida real estate, with home prices in Tampa, St. Petersburg, and Clearwater up as much as 100% over prices from just 10 years ago.

This site will focus only on the Tampa Bay area housing market. I also have deep feelings about the Buccaneers and what they should be doing with Chris Simms, but you’ll have to go to a sports site for that kind of news. This place is just for real estate.

Coming in the next few weeks:
The online tools you need to use to get the best price for your house, or the lowest price for the house you’re buying.

Profiles of the top estates in the Tampa Bay area. There are some mega homes in this place, probably well beyond the means of most visitors, but still interesting to look at. In addition, these homes often have styling features that you can emulate in your less expensive home. You’ll often look at things differently when you’ve seen the vision of some of America’s top architects.

Technorati Tags: tampa bay, real estate, tampa, st. petersburg, clearwater, florida