Tampa Bay Area May Have Hit Bottom!
The St. Petersburg Times today released an article in which an economist with Wells Fargo, Mark Vitner, stated that it is possible that the real estate market in Tampa Bay may have finally bottomed out.
Vitner said the recent surge in sales can be attributed to low prices and mortgage interest rates, an improving local economy, and to investors searching for bargains.
According to the Times, 4,296 homes were sold during March in Pinellas, Pasco and Hillsborough Counties as compared to 3,258 in February. That's a sales increase of 32% in just one month in the three counties. Moreover, the newspaper reported that sales volume has increased 14% in the three counties this March compared to March 2010.
So, what does this mean for real estate buyers?
Perhaps Vitner's words answer that question best. He said "We're either at or very close to the bottom of the market. It would be crazy to wait for the last nickel to fall." If I interpret that correctly, he's saying that if you are a buyer looking for the best time to buy, this is it.
Readers of this blogsite have read many times that it is my opinion that trying to anticipate the absolute bottom of the real estate market is impossible. There are simply too many variables and nobody has all the data. Suffice it to say that we are at the point where buyers need to act now before the market starts to shift away from their current advantage. The housing market is at or near a six month supply of inventory for sale. Six months supply is considered a market in equilibrium, meaning there is no great advantage for either buyer or seller. Obviously, this means we must be at or near the bottom of the market since neither party to a transaction has an overwhelming advantage at the present time.
My suggestion? If you're a buyer now is the time to act. Prices probably will not go much lower, but inventory will start to shrink. As the inventory shrinks, prices will go up. Act now!
-30-
Vitner said the recent surge in sales can be attributed to low prices and mortgage interest rates, an improving local economy, and to investors searching for bargains.
According to the Times, 4,296 homes were sold during March in Pinellas, Pasco and Hillsborough Counties as compared to 3,258 in February. That's a sales increase of 32% in just one month in the three counties. Moreover, the newspaper reported that sales volume has increased 14% in the three counties this March compared to March 2010.
So, what does this mean for real estate buyers?
Perhaps Vitner's words answer that question best. He said "We're either at or very close to the bottom of the market. It would be crazy to wait for the last nickel to fall." If I interpret that correctly, he's saying that if you are a buyer looking for the best time to buy, this is it.
Readers of this blogsite have read many times that it is my opinion that trying to anticipate the absolute bottom of the real estate market is impossible. There are simply too many variables and nobody has all the data. Suffice it to say that we are at the point where buyers need to act now before the market starts to shift away from their current advantage. The housing market is at or near a six month supply of inventory for sale. Six months supply is considered a market in equilibrium, meaning there is no great advantage for either buyer or seller. Obviously, this means we must be at or near the bottom of the market since neither party to a transaction has an overwhelming advantage at the present time.
My suggestion? If you're a buyer now is the time to act. Prices probably will not go much lower, but inventory will start to shrink. As the inventory shrinks, prices will go up. Act now!
-30-
posted by Terry Ward at 5:56 AM
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