As in other areas across Florida, it seems the once “too hot” Tampa Bay real estate market was not spared from the meltdown of the market since mid 2005.
The second half of 2006 saw the relative bloating of home inventory in Tampa Bay.
Where have all the buyer’s gone?
If you would ask a realtor about it, he would probably tell you that buyers are just around the sidelines…observing…waiting…for the right timing to pounce. He would say that Tamp Bay is definitely a buyer’s market, but the ‘valuation enjoyed by many homeowners has priced many potential home buyers out the market. ”
Home buyers are reluctant to buy not because of unavailability of homes as there is more than two times the inventory of a year ago.
The downtrend of home sales is not exactly caused by interest rates. Statistics show that rates for interest was slightly higher than two years ago, yet its increase is still reasonably and understandably low.
So, what’s keeping the buyers from buying?
There are two factors: One – taxes, and two – insurance costs.
One of the biggest obstacles faced by home buyers is taxes. Basic property taxes have presently doubled in figures that what they were a few years ago. An average single family home which is approximately 1,000 sq. ft. would require an average of a little below $1000 a year property tax way back in 2004. In 2006, tax bill would already amount to roughly $2000 annually. That would account an extra $100 monthly expenditure on top of the mortgage payment.
Another big problem lurking potential buyers is insurance costs. The onslaught of hurricanes in the past 2 seasons has fueled insurance cost to a jump start. Not only that costs were outrageous but were likewise lesser in comprehensive package, as damage from a hurricane is no more deductible, but rather property owners are charged from a minimum of 2% to as much as 4% of your home value in the event of hurricane.
Real estate observers believe the Tampa Bay real estate market will remain sluggish till the end of 2007. Nevertheless, should this happens or not, there remains a glimmer of hope that home sales will continue to struggle and beat the odds, which according to some, the sun will shine upon Tampa Bay real estate market till early 2008.
Roma Agsalud http://tampa-bay-realestate.line.us