The subprime mortgage crisis is having an effect on an unexpected sector of the Tampa real estate market - luxury homes and condos.
The drop in high-priced Tampa Bay home sales may be traced, slightly to troublse in the sub-prime mortgage sector, but it's also because fewer investors are willing to buy packaged jumbo mortgage portfolios. In the past, banks catering to the high-end real estate market were able to limit their exposure by packaging up "jumbo" loans (those above Fannie Mae, Freddie Mac and Ginnie Mae limits) and selling them to investors. Such investors are now hard to find.
Banks and mortgage companies that write jumbo loans are having to keep those loans on their own books and they're not happy about it. To compensate for this extra risk, they are charging much higher interest rates on "jumbo" loans. Some jumbo mortgages are now incurring interest rates 3% or more higher than what was charged a few months ago and that is depressing luxury homes and condo sales.
The problem is troublesome in the Tampa Bay Florida real estate market with its large inventory of homes and condos in the $500,000 and up price range for sale.
Soon, luxury home and condos owners who need to sell will start reducing their asking prices substantially if they want to see a "SOLD" sign in their future. As a result, those with cash on hand will be able to purchase a Tampa Bay luxury property at an attractive price.
When you're ready to start looking, contact Cheryl Stimac, Tampa Bay Florida real estate expert.
The drop in high-priced Tampa Bay home sales may be traced, slightly to troublse in the sub-prime mortgage sector, but it's also because fewer investors are willing to buy packaged jumbo mortgage portfolios. In the past, banks catering to the high-end real estate market were able to limit their exposure by packaging up "jumbo" loans (those above Fannie Mae, Freddie Mac and Ginnie Mae limits) and selling them to investors. Such investors are now hard to find.
Banks and mortgage companies that write jumbo loans are having to keep those loans on their own books and they're not happy about it. To compensate for this extra risk, they are charging much higher interest rates on "jumbo" loans. Some jumbo mortgages are now incurring interest rates 3% or more higher than what was charged a few months ago and that is depressing luxury homes and condo sales.
The problem is troublesome in the Tampa Bay Florida real estate market with its large inventory of homes and condos in the $500,000 and up price range for sale.
Soon, luxury home and condos owners who need to sell will start reducing their asking prices substantially if they want to see a "SOLD" sign in their future. As a result, those with cash on hand will be able to purchase a Tampa Bay luxury property at an attractive price.
When you're ready to start looking, contact Cheryl Stimac, Tampa Bay Florida real estate expert.
1 comment:
Your blog and your website at www.tampafloridahomes.net are both very well done. Interesting material
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