Archive for July, 2008

Tampa’s Home Price Decline Is Flattening

July 29th, 2008 categories: Real Estate Market Reports

Don’t believe everything you read! Sage advice, especially when it concerns how some of the media report on the real estate market.

It’s the end of the month and with it always comes the much anticipated release of the Case-Shiller Home Price Indices report. The headline on Yahoo! Finance is enough to scare most buyers right back across the fence:

Home Prices Drop by Record 15.8% in May

That’s a very misleading headline (my opinion). Home prices did not drop 15.8% in May!

What the headline should say:

Twenty City Home Price Index Falls 15.8% From May 2007 to May 2008

That conveys the truth. Because that’s what really happened. The composite value of homes in 20 cities fell by 15.8% in a year. To say that home prices fell by almost 16% in May is a bunch of BS! (my opinion)

But real estate is local. What’s the value in a composite of 20 cities spread across the USA, if I’m in Tampa? But that’s the media’s way of creating dramatic headlines. Home prices did not drop 15.8% in May!

So what’s really happening in Tampa? Let’s just take the Case-Shiller numbers and graph them. Shall we? Graphs put numbers into perspective and help us to better understand the facts. Below is a chart of the Case-Shiller Tampa numbers from May of 2007 through May of 2008.

The decline is beginning to subside (flatten).
So here are some facts, not some BS headline that conveys a non-truth (my opinion):

1. Fact: The drop in the Tampa Case-Shiller number from April 2008 to May 2008 (1.36) was the lowest drop since March of 2007.
2. Fact: Since March of 2008 the drop in the Tampa Case-Shiller index has been slowing.
3. Fact: The drop in the CS Tampa index from February 2008 to March 2008 (6.05) was the greatest of the current down market.

So maybe the slow down in price declines is only temporary. Time will only tell. But maybe, just maybe, we are approaching, or are at the bottom regarding price declines. But the fact is Home prices did not drop 15.8% in May!

My 2 cents.

Posted by Lenny Gurvich | No Comments »

The Benefits of Staging Tampa Homes For Sale

July 29th, 2008 categories: South Tampa, Tips for Sellers

In a recent post I mentioned that homes that are best prepared for sale are the ones most likely to find a buyer quickly. Price is most important, but if you want to maximize price, you better prepare adequately. Staging is the term most often used these days when referring to preparing a home for sale. The way a home is packaged and presented to buyers goes a long way in determining how well it will appeal to buyers, and how quickly it will sell. It is very important to prepare a home so that it will appeal to a broad audience of potential buyers.

Just like any other product for sale, a target group of prospective buyers must be identified, and then the home must be prepared and packaged to best appeal to that target group of potential buyers. As one professional stager that we work with says, “the way you live in your home and the way we market and sell your house are two different things”. You want to minimize the things that may turn buyers away, and maximize the things that appeal most to most buyers.

Let’s face it, a home can be sold at any price if a seller is not focused on the highest and best price. But for those who are looking for the best price (most sellers), the effort and expense in staging is usually well worth it. Homes that are prepared best sell faster. Homes that sell fast sell for more, generally speaking. There are only so many buyers out there. Appealing to more of them gives sellers a better chance to sell faster, and for more $$. The importance of preparing a home for sale can’t be overstated.

For more information on home staging visit StagedHomes.com

Questions about the market? Contact us.

Posted by Lenny Gurvich | No Comments »

How Long Will It Take To Find A Buyer?

July 28th, 2008 categories: Real Estate Market Reports, South Tampa, Tips for Sellers

I was speaking with a prospective seller client recently and she asked the question that most, if not all, seller’s ask. “How long is it taking to sell a home?” The way that I answer this question is to look at homes in the same neighborhood that have either recently sold or are under contract (pending). Our MLS has a statistic called Days To Contract, which is a measure of the days that the home was listed for sale until going under contract. Of course the numbers are widely ranging, but we can focus on the median as a gauge of how long it will take.

The homes that go under contract quickly are either prime properties or are homes priced where buyers see value, or some combination of both. The ones that take longer to sell most likley had to go through a number of price reductions to find the sweet spot, where buyers saw value. Or maybe the right buyer just had to enter the market. The properties that are overpriced or are not prepared correctly prior to being placed on the market are the ones that are still on the market, expired or withdrawn from the market.

So here are some numbers to consider. For the single family homes in Tampa that are under contract currently, here is what we know:

• Total Number of Pending Single Family Homes: 828 (Yes buyers are buying!)
• Median Days to Contract: 55
• Maximum Days to Contract 492 (That’s a patient seller)
• Minimum Days to Contract: 2 (Does that still happen?)
• Median List Price: $189,000
• High Price: $2,100,000
• Low Price: $22,900
• MLS Grid with the most pending properties: WJ17 (Palma Ceia Area)

The answer to “how long” depends on a number of factors including how many buyers are currently in the market, property condition, property type, LOCATION, etc. The one thing sellers have the most control over is the preparation of the property in anticipation of placing it on the market for sale. Those who prepare best and price best are rewarded with a relatively low Days to Contract.

Considering a sale? A purchase? Both? Call us: 813-205-1802

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Data used is from the Mid-Florida Regional MLS, all brokers/agents included, and does not include private-non brokered properties for sale.

Posted by Lenny Gurvich | No Comments »

Tampa Foreclosures Update

July 23rd, 2008 categories: Real Estate Market Reports, Short Sale Information, Tampa Real Estate

A few months back I posted information regarding the number of foreclosures in Tampa. Time for an update. At that time, the number of Lis Pendens (foreclosure notice) recorded with the County clerk had topped out in February at 1734. Well May sort of blew that number away with a whopping 2032 Lis Pendens recorded for the month. June wasn’t far behind at 1893. To date in July (through the 22nd) we’ve had 1471 notices recorded. So July may just top June and possible May as well.

Why are these numbers important? Because this gives me an indication of the number troubled mortgages out there. The Lis Pendens is just the beginning of the foreclosure process. It the first notice that goes out to a homeowner that a lender, HOA, or condo association is initiating a foreclosure. You can assume that there will be further downward pressure on property values in areas where there are many pre-foreclosures. Conversely, you can assume that there will be less of a threat to home values in areas that have little or no foreclosure activity.

In doing some further research there are certain zip codes that have an overwhelming majority of pre-foreclosure listings on our MLS. The 33569 zip leads the way in the number of MLS listings tagged as pre-foreclosure or bank-owned. Others zips with many of these lisitngs include 33647, 33604 and 33615.

By contrast, some Tampa area zips that have very few pre-foreclosure and bank-owned listings (relative to total listings) include 33629, 33606, 33609, 33618.

Considering a purchase? A Sale? Contact us @ 813-205-1802

Data used is from the Clerk of The Circuit Court, Hillsborough County, and from the Mid-Florida Regional MLS.

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Posted by Lenny Gurvich | No Comments »

Tampa Real Estate Market Conditions Report

July 15th, 2008 categories: Real Estate Market Reports, Tampa Home Buyer Tips, Tampa Real Estate

It’s been a while since I’ve posted any Tampa market conditions data here. It’s been a while since I’ve posted anything here for that matter. Clients come before writing of course, and that’s been the case as of late. Buyer traffic has certainly picked up in recent months, and inventory is trending downwards. But are those buyers actually buying? Yes is the short answer. While there are many wary and uncertain buyers in the market, the numbers speak for themselves. Sales have been rising.

I closely watch the number of pending listings on the Tampa MLS. That gives me a real time (sort of) look at demand for Tampa real estate. And while there has been no spike in listings going under contract, the trend is upward. So with a downward trending supply, and upward trending demand, we are seeing market conditions changing ever so slightly. The gap between supply and demand is (has been) closing. Something we have not seen here in Tampa for some time. Will the trend continue? Time will only tell.

Here’s a look graphically:

More specific questions about the market? Looking to buy? Sell? Call us 813-205-1802

Data used is from the Mid-Florida Regional MLS, all brokers/agents included.

Posted by Lenny Gurvich | 2 Comments »

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