The Tampa real estate market has seen its share of lows over the course of the last 5 years. Predominantly brought on by land speculation from trigger happy investors and over extended homeowners, the Tampa market has fallen victim to an over supply of housing inventory in recent years. The bulk majority of those properties have sat mostly vacant in Tampa communities across the bay area awaiting short sale or foreclosure proceedings. As bleak as it has been, there is a glimmer of hope on the horizon as recent MLS statistics released from the Greater Tampa Association of Realtors suggests that housing supply in Tampa is steadily decreasing.
Housing inventory in the Tampa market has been on a steady decline over the past 11 months beginning Nov. 2010. Currently, when measuring year-over-year percent change in inventory levels, we find that total available supply in combined Pasco & Hillsborough counties is down a significant 40% thru October 2011. That huge drop in inventory has brought along with it a reduction in Months of Inventory, a metric derived by dividing total available listings by total sales, from 11 months in October 2010 to 6 months of inventory in October 2011.
In order to burn down available inventory in the Tampa market, sales have been on a steady rise through out most of the year. Current month measured over same month prior year nets an increase of 14% in sold units for October 2011. Average Days On Market is also on rise, up 9 days when compared to same month last year, indicating a mix of longer selling cycles and old inventory burn off.
Driving the decrease in inventory and the lift in sales has been Tampa home prices that have been hitting historic lows when compared to the last 5 years in the marketplace. Average sale price in October 2011 was $151k making home ownership a very attainable goal for most consumers in the marketplace that draw in the average Tampa household mark of $58k / year. Sale prices, when measured over last year, saw no recognizable gain or lag indicating a stagnant 12 month period of flat to reduced pricing that has been necessary to spur marketplace demand.
Even though the Tampa real estate market is finally shrugging off the burden of heavy supply that existed in the marketplace, pricing still remains as a plaguing issue that will hold back most Tampa property owners from selling their property assets for reasonable rates of return. And, as more Americans continue to abandon the home ownership dream, expect more property owners to stick to renting out their property holdings for the time being until the housing marketplace makes a full recovery.
Click here to download the full report: Tampa Real Estate Report
Read our latest Tampa Housing Report write up here: June 2012 Tampa Real Estate Report
Very nice informatie post. Thank you for sharing the market news. Keep up your great work and i will check more later.
Large number of people look for this property information but they cannot get effective one. I really thanks you for sharing it <br />