It's Time to "Make Your Move"

    Adding to the impact of increasing Tampa Bay home sales volumes, mortgage interest rates saw a significant increase in the past week after the Fed's Federal Open Market Committee (FOMC) suggested in their post-meeting report said that that because of the U.S. economy is doing better than expected, that inflation may be more of an near-term economic concern than previously thought.

    Although the FOMC voted to leave the Fed Funds Rate unchanged in its current range near 0.0%, their comments after the meeting led almost immediately to a significant increse in morgtage rates. Conforming 30-year fixed mortgage rates across Florida rose sharply immediately after the FOMC report. Freddie Mac’s weekly mortgage rate survey, which has shown 30-year fixed-rate conforming mortgage rates close to 3.90% for most of the past year, now shows average 30-year fixed rate mortgages clost to or at 4.25%. That is the highest interest rate level in over a year.

    Mortgage rates can be expected to rise even further in coming weeks on any reported strength in the housing sector of the economy. As an example, The Housing Starts Report issued last week showed housing starts falling slightly by 1.1% to 698,000 in February. However, that was more than offset by an upward revision to January's report up to 706,000 and a 26.2% increase in multi-family starts. Furhter, new building permits jumped 5.1% to 717,000, the highest level since October 2008.

    On March 26th, the National Association of Realtors (NAR) reported that "Pending Home Sales", while down slightly in February, remain notably above the pattern in the first half of 2011. Pending home sales is the number of home sales under contract, but not yet closed, providing a look-ahead of closed sales volumes to be reported in the next month or two.

    Locally, the Greater Tampa Association of Realtors (GTAR) reported that the supply of unsold single-family homes on the Tampa real estate market fell from 8.2 months in February, 2010 and 8.4 months in 2011 to only 4.5 months of supply in February, 2012. Even more impressive, the supply of condominiums fell from 10.9 months in February,2010, and 7.7 months in February, 2011 to just 3.6 months this February. Both single-family and condo supplies have trended downward consistently since the end of 2008. A supply of less than about 6.0 months is considered a “seller’s market” where prices stabilize and begin to rise.

    So, while there is still some uncertainty in the housing market, one thing is clear. In addition to the fact that housing prices and sales volumes have definitely bottomed out and are stabilizing, there is nothing to suggest that home prices and mortgage interest rates in the popular Tampa Bay Florida area are going anywhere but up from here.

    If you are one of those who has been considering buying a seasonal or permanent home or condo here in Tampa Bay, it is clear that prices are about as low as they are likely to go -- and, interest rates have nowhere to go from here but up.

    "In fact," said Cheryl Stimac, a respected Tampa Florida real estate broker, "if you’ve been considering buying a home or condominium in the Tanpa Bay area in the near-term, you would be wise to lock-in a mortgage committment as soon as possible, even before you find that perfect home you're looking for. "Mortgage interest rates are unlikely to go down from here, and very much more likely to continue to creep upward," she added.

    If you have questions about any facet of relocating your family to Tampa Bay or even if you are just looking for general information right now, you casn reach Cheryl Stimacd by E-Mail, by phone at 813-263-6806 or request Tampa Bay and Tampa real estate information on her website.