Inventory Continues to Decline

This is big news in my opinion. The number of active listings in the City of Tampa continues to decline at a good pace, with just over 6200 residential properties listed for sale on our MLS. By comparison there were just under 9000 listings active at this time in 2008. It was July of 2006 the last time listings were at this level. Remember those market conditions? That was the beginning of the run up in active listings to their peak of over 9000 in February of 2008. Declining supply of homes for sale is a good thing.

Demand Continues to Increase

I measure demand by the number of pending listings, those that are under contract waiting to close. There are just over 2000 properties tied up as of today, July 1st. This time last year? Just over 1000. Last time this many were pending? Try August of 2006. Increasing demand for Tampa homes is a good thing.

Sales Holding Their Own

One of the headlines in May was that sales activity had slipped somewhat as compared to May of 2008. A quick look at MLS data indicates that June sales will be up slightly as compared to June of 2008 for the City of Tampa. This is also a good thing.

Price Declines Stabilizing

The Case Shiller Home Price Index for April (2 month lag) is out, and it shows that prices did not drop all that much from March to April. Tampa saw a flattening of those numbers last summer also, then the bottom fell out again in October. Will this flattening continue? If it does it will be a good thing.

So the march to a more stable market seems to be continuing for now. We need to mention however that 62% of those pending listings are either pre-foreclosure or are post-foreclosure REO bank-owned properties. About 47% of those pending listings are tagged as short sales, requiring third-party approval.

Looking to buy? Looking to sell? Questions regarding the market? Contact us.

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

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Eco Friendly Lighting

Without a doubt, the newest home décor trends of 2009 are centered on eco-friendly renovations and creating a green, sustainable and efficient home lifestyle. Green is the new chic and homeowners can boast being eco-friendly, because it adds to the overall value and appeal of their homes. Today’s buyers like eco-friendly. Eco-friendly lighting is just one facet of an eco-friendly home renovation, but it is absolutely essential. Lighting can be a huge energy hog! Before putting your home up for sale, consider a few eco-friendly lighting projects that will surely attract prospective buyers.

LED Lights for the Next Generation of Green Building

LED (light emitting diodes) lights are fast becoming an innovative solution to eco-friendly home lighting. LEDs are extremely energy efficient when compared to traditional incandescent bulbs, and they are a long-term investment that pays off. In fact, LED lights can last anywhere from 50,000 to 100,000 hours vs. incandescents, which are good for about 10,000 hours on average. They also burn very cool, unlike incandescent bulbs, which emit about 98 percent of their energy as heat, a big bonus here in central Florida. You also don’t have to sacrifice style when switching to LED lighting technology. Many of the LED lighting fixtures are tremendously attractive and come in all sorts of styles and finishes. LED pendant lights are also very trendy and serve as perfect kitchen centerpieces, fitting in well above a small kitchen table or a kitchen island. Overall, throwing away those old incandescent lights and making the switch to LED technology will significantly add to the value of your home, while keeping your wallet full in the long run.

Creating an Eco-Friendly Curbside

There is no better way to create a more welcoming feel for prospective buyers, than to shower them with an aesthetically appealing visual of outdoor lighting (for those post 5pm January showings or nightime drive-bys of course)). This appeal can significantly contribute to first impressions and every cent that you put into your exterior lighting, will certainly yield a higher return at the closing table. Start off by adding some knee high eco-friendly, solar walkway lights to adorn the pathway leading up to the home. This not only throws a guiding light on the pathway, but it also highlights a nice plant or flower-lined walkway as well. Another great investment to your home’s exterior appeal is the addition of Dark Sky and ADA compliant outdoor wall sconces. The additions of a couple well-placed Wall Sconces are a subtle, yet captivating way to highlight your home’s exterior. Additionally, be sure to let prospective buyers know that these beautiful sconces are eco-friendly as well.

Highlighting your property with eco-friendly lighting solutions will pay dividends in the marketing of your home, icing on the cake, so to speak. Staying above the trend is increasingly important in real estate, and home staging is no exception. Focusing on eco-friendly lighting upgrades can certainly add value for today’s eco-friendly Tampa home buyers.

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Tampa Home Listings Pending

And we need these first timers because much of what they are buying (or attempting to buy) is the distressed stuff, the pre and post foreclosure properties. The majority (59%) of the pending listings are either short sales or bank-owned properties. The road to price stability starts with decreasing the number of distressed mortgages. Forecasts are for that distress to increase through the remainder of 2009.

Meanwhile, the number of active listings is steadily decreasing as well, now well below 7000, at a level we have not seen since July of 2006. All good news for Tampa real estate.

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But automated valuations do have some value, as a general guideline at the minimum. We have an automated valuation system on our website that uses the Conventional Mortgage Home Price Index or the CMHPI. This system looks at appreciation and depreciation over time in the respective zip code to estimate current value. Works pretty well. Give it a shot at: Tampa Home Values

Tampa Home Value Estimate

But for a more accurate assessment of selling price and marketing time, contact us.

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Considering a home purchase?

FHA mortgages are very popular in this current market and for good reason. We’ve represented many Tampa home buyers recently who have taken advantage of the FHA mortgage to buy a new home, whether first time buyers or experienced home buyers.

What are the advantages of an FHA mortgage loan?

FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment. Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in this market. FHA not only helps people buy a home, but helps them keep it as well. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.

But are you eligible?

In order to be eligible for an FHA-insured mortgage, a borrower must:
• Occupy the property as the principal residence;
• Possess a valid Social Security Number;
• Have a two-year employment history;
• School and military service count towards this
two-year requirement.
• Not be delinquent on any Federal debt such as a student
loan or other FHA-insured mortgage; and
• Meet flexible credit requirements.

But FHA loans had (and still have)  a reputation of being difficult to work around for both buyers and sellers. But recent changes have resolved most of those objections:

FHA no longer limits what closing costs the homebuyer is permitted to pay. Sellers formerly had to pay some additional closing costs that FHA would not allow the buyer to pay.

FHA has eliminated unnecessary requirements to make minor repairs. Another headache for sellers that has been resolved.

The buyer’s entire cash investment—as little as 3.5%—can be a gift from a family member, employer, charitable organization or local government entity.

The seller can contribute up to six percent of the home’s price toward  the buyer’s closing costs. Lots can be done with 6%! (interest rate buy-down, pre-paid interest on the loan, etc.)

So you can see why these loans are once again so popular.

Considering a home purchase? Contact us and we’ll put you in touch with one of our FHA loan contacts to see if you qualify, and if so,  for what loan amount.

Sellers: Buyers are shopping homes that offer FHA financing. Make sure your property is marketed with that in mind. Looking to sell?

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