Prices Have Not "Bottomed-Out" In Tampa Bay
Although statistics indicate that Tampa Bay's real estate price decline has slowed during the past year, new information from Zillow.com shows that prices continue to fall here.
According to information released today and reported in the St. Petersburg Times, average home prices in Tampa Bay fell another 10.2-percent during the past twelve months. Zillow said that nationally, average home prices are down only 3.8-percent for the past year. Additionally, Zillow reports that Tampa Bay home prices fell 0.8-percent from April to May versus a 0.4-percent drop nationally. Home values have crashed some 46-percent from their peak in 2006.
The Zillow report spotlighted Tampa Bay as among the worst performing real estate markets. Included in that spotlight are the cities of Detroit, Las Vegas, Orlando, Miami and Phoenix. Zillow's chief economist, Stan Humphries, wrote in a blog site that he expects a continuing decline in home prices until later this year due primarily to high unemployment and the end of home-buyer tax credits.
So, when will we see improvements in pricing?
Well, if Humphries is correct we might see prices continue to decline into 2011. Why? First of all the government has indicated that Congress has no plans to renew the home-buyer tax credit program that stimulated home sales in the first quarter of this year. Second, the so-called economic recovery has failed to produce meaningful employment increases. So if these are the two things that will increase sales and improve real estate prices, it frankly looks pretty grim.
Let's hope there are other factors that can stimulate a recovery in the real estate market in Tampa Bay and across the country.
In the meantime, if you are selling a property it would be wise to position your price to reflect the current economic reality.
-30-
According to information released today and reported in the St. Petersburg Times, average home prices in Tampa Bay fell another 10.2-percent during the past twelve months. Zillow said that nationally, average home prices are down only 3.8-percent for the past year. Additionally, Zillow reports that Tampa Bay home prices fell 0.8-percent from April to May versus a 0.4-percent drop nationally. Home values have crashed some 46-percent from their peak in 2006.
The Zillow report spotlighted Tampa Bay as among the worst performing real estate markets. Included in that spotlight are the cities of Detroit, Las Vegas, Orlando, Miami and Phoenix. Zillow's chief economist, Stan Humphries, wrote in a blog site that he expects a continuing decline in home prices until later this year due primarily to high unemployment and the end of home-buyer tax credits.
So, when will we see improvements in pricing?
Well, if Humphries is correct we might see prices continue to decline into 2011. Why? First of all the government has indicated that Congress has no plans to renew the home-buyer tax credit program that stimulated home sales in the first quarter of this year. Second, the so-called economic recovery has failed to produce meaningful employment increases. So if these are the two things that will increase sales and improve real estate prices, it frankly looks pretty grim.
Let's hope there are other factors that can stimulate a recovery in the real estate market in Tampa Bay and across the country.
In the meantime, if you are selling a property it would be wise to position your price to reflect the current economic reality.
-30-
posted by Terry Ward at 3:23 AM
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