Tampa Bay Demand for Homes Outstripping Supply with Predictable Result

Across the United States, new construction homes and existing home sales are strengthening and prices are rising, stoking confidence among observers like the National Association of Realtors that a housing recovery is finally underway.  Nationwide, sales of existing homes jumped 10.4% compared with July last year.  In step with the nationwide market, in the Hillsborough and Pasco County areas of Tampa Bay, home sales which normally drop off during the summer months, remained strong in July with 2,275 closings, 10.7% higher than the level a year ago.

Home to championship golf courses, close to the gulf beaches, and with phenomenal weather, Tampa Bay is a magnet for families considering moving to Florida.  The Hillsborough River, stretching 56 miles, offers endless family activities including canoeing, fishing, camping and hiking.  The Florida Aquarium, Busch Gardens Tampa Bay and Lowry Park Zoo entertain thousands of families every day.  For sports enthusiasts, there are professional baseball, hockey, football and arena football teams, including the SuperBowl winning Tampa Bay Buccaneers.

Those seeking art, music, dance and theater find a wealth of galleries and museums such as the Tampa Museum of Art, Museum of Science & Industry and USF's Contemporary Art Museum.  Music lovers can hear everything from blues to reggae nightly.  Plays, Broadway musicals, operas and dance excite thousands at the Straz Center for the Performing Arts.

Beneath all this good news, however, lies a dilemma rapidly developing in the Tampa real estate market.  There are simply not enough homes available here to meet the demand.  This is information you need to know if you’re still “sitting on the fence” about buying a home here in Tampa Bay.  A skeptical reader might ask, “but where is all this demand for homes coming from when the overall economy still isn’t doing all that well ?”

First, its coming from first time buyers.  Rents nationwide and locally in Tampa Bay are rising leading many young families to decide that it will be cheaper to own than rent for the foreseeable future.  They also see that the decreasing number of homes on the market is beginning to drive prices up.  First time buyers who can qualify for a mortgage are recognizing that if they are going to buy, they need to do it now before the price of the home they want gets beyond their means.  That fear, plus the fact that 30-year mortgage rates are at historic lows of about 3.5%, have made owning a home a more affordable and more desirable option for young families than it has been in a decade. When those buyers go looking, they find fewer and fewer homes available to choose from.

The second source of demand is coming from the other end of the income strata.  Even though mortgages are harder to get than at any time in 6 or 8 years, people in the upper income brackets can qualify for attractive-rate mortgages because they have the resources to meet the 20% down payment criteria, and even more frequently, they can and do, pay cash. These families can afford to buy a home wherever and whenever they wish and they’ve decided Tampa Bay is the place and this the time to do it.

At the same time demand for Tampa properties is high, the available inventory on the market dropped in July to a new low of 2,267, a full 66% below the level a year ago.  In Hillsborough County, where the supply of homes for sale on the market exceeded a 24 month supply  just two years ago, the number of for-sale homes has plunged to just a 3-month supply, half  the supply that should be available in a healthy market, according to the Tampa Bay Times.

So, if demand is high and existing home inventories are low, why aren’t builders providing a higher supply of new-construction homes to meet the demand?  

Builders have a problem of their own.  A few years ago, banks would lend money to builders to build “spec” homes – homes for which there was not already a sales contract in place.  That is seldom the case today.  After being burned by so many bad mortgages in the recent past, many banks refuse to provide construction loans to builders unless there is already a firm sales contract already in place. As a result few spec homes are being built further constraining the supply of available homes.

What does this all mean to you?  Growing demand for homes in all price ranges coupled with a diminishing supply is causing what always happens when demand outstrips supply – prices are rising.  On attractive homes, and even on most average homes, Tampa Bay Realtors are now seeing multiple, competing offers  –  offers above the asking price in more and more cases.

If you are considering buying a home or condo here in Tampa Bay as your primary home, a second home or as a retirement home any time in the next few years, and if you can qualify for a mortgage, or don’t need a mortgage, contact an experienced Tampa Bay Realtor like Cheryl Stimac today and get started picking out your home here in Tampa, the “heart of Tampa Bay.”

Is a Tampa Bay Condominium the Right Next Step For You?

    Many baby-boomers, as they transition from raising a family to the “empty-nester phase or from a full-time career into a somewhat slower-paced retiree lifestyle also relocate to a place with a warmer climate like here in Tampa Bay, Many of those people would also like to reduce and simplify the work associated with home ownership. Yet, these folks do not want to give up the pride and sense of stability that comes with owning your own home.

   The option of renting may be appealing to some, but most of us still want to “own our own home.” In the Tampa Bay real estate market today, there are options to meet the needs and desires of everyone, and many people are finding that the condominium lifestyle offers many of the benefits of home ownership without all the drudgery that comes with a single-family home.

   Condos in Tampa Bay come in all shapes and sizes, in all sorts of locations from urban living spaces close to the arts and cultural and sporting venues of downtown Tampa like those at The Place at Channelside or on the waterfront on Harbour Island, Davis Island or along Bayshore Boulevard. Other condos are set in more suburban areas, like Westchase or Wesley Chapel, away from the hustle and bustle of downtown and closer to regional shopping malls, parks, nature trails and such.

   There are high-rise towers, two and three-story townhomes and single story villas. Some single story villas and patio homes are attached while others are free-standing. Many offer garages,while some provide community swimming pools, spas and fitness centers. There are one, two and three bedroom units, some even have four bedrooms. There are condos with one, two and three baths. Some are relatively simple in layout while others can be truly opulent. Some have simple views of the surrounding units while others have scenic views of golf courses or of the waters of Tampa Bay or the Gulf of Mexico. They range in size from less than 650 square feet to well over 2,000 square feet of living space.

   Regardless of which type or style of condo you buy, the condominium lifestyle relieves you of the responsibility for lawn and garden work, exterior building maintenance, and, if there is a pool, maintenance of that facility as well. You can go about your life knowing that the yard in front and around your home will always look well cared for, that exterior building maintenance is being done by licensed and bonded professionals, and that your property will always be in compliance with all local ordinances.

   Depending on the style of condo you buy, the condominium association may also take care of other common amenities such as a well-appointed lobby, access security, libraries, fitness centers, and meeting rooms, all facilities you’ll get to use without the effort involved in having one of your own.

   Another significant benefit of living in a condominium is your personal sense of safety and security. Just the fact that you live in a building with others gives you a sense of security knowing that there is likely someone else watching what’s going on most of the time including when you come home after dark from an evening out. Most condominium properties are well lighted and some are gated; some even have full-time security personnel on site. You do need to understand that such amenities aren’t free.

   Your condominium association fee will, of course, be higher as you add extra layers of convenience and security, but for many of us, those extra services are provided to you in a condominium setting at a much lower cost than you could provide the same services on your own in a single family home.

   If you are moving to Tampa Bay, or considering downsizing and/or simplifying your life, don’t rule out the condominium lifestyle option until you’ve let me introduce you to one of more of the many condominium options available to you at attractive prices today in Tampa Bay Florida.

   I would be happy to answer any questions you may have about Tampa Bay condominiums if you'll complete my brief Request for Tampa Bay real estate information form. You may also E-Mail Me at your convenience. For more immediate action, call me at 813-263-6806. I'd be delighted to chat with you today.