Archive for September, 2009
USDA Loans on Hold
Looking for 100% financing in Pasco County or rural parts of Hillsborough County? USDA loans have been a blessing for Tampa Bay home buyers looking to purchase with no money down. See http://bizy.be/IKmmC for details.
The USDA Rural Housing fiscal year will be ending 9/30/2009. Although USDA fully expects to receive funding for the 2010 fiscal year, they will only be issuing conditional commitments for any new loans that are submitted. Hence, lenders can still take loan applications but they cannot lock rates or issue approvals until USDA funds are replenished.
When the USDA is funded, it usually takes 45-60 days to close a transaction. Hence, the idea of using a USDA loan for a Tampa short sale is a bit risky…since short sale approval letters require a buyer to close within 30 days of signed addendums.
Charting Trends in Tampa Bay Real Estate
Curious about the factors that impact home prices in the Tampa Bay metro market? Check out the latest Tampa Bay MarketEdge Report that has easy to digest charts for the key economic factors that drive changes in home values such as: consumer confidence, unemployment, housing starts, affordability index, bankruptcy rates, interest rates, home owner vacancy rates, and much more. Other Tampa Bay real estate market barometers include: the pending home sale index, absorption rate, months supply of new homes, median home prices, employment to permit ratio, and other eye-popping indicators. Click MarketEdge Report for charts.
How to Select a Home Inspector
The State of Florida does not have any current licensing requirements for Home Inspectors, however, licensing regulations will become effective July 1, 2010. In the meantime, Tampa Bay home buyers and sellers should look for an inspector with: national certifications, extensive experience, and a strong reputation. The inspector should provide detailed reports complete with checklists and photos such as this sample report .
National Affiliations & Certifications
Tampa Bay home buyers and sellers should insist that an inspector meet the criteria of a nationally recognized organizations that have standards of practice, certification exams, codes of ethics and continuing education requirements. Here are some of the leading home inspection organizations:
ASHI: American Society of Home Inspectors
NAHI: National Association of Home Inspectors
InterNACHI: International Association of Certified Home Inspectors
To locate an inspector, you might consult these links:
NAHI Home Inspector Search
ASHI Home Inspector Search
InterNACHI Inspector Search
HomeGuage Florida Search
For further reading, check out the ASHI Frequently Asked Questions (FAQ) http://www.ashi.org/customers/faq.asp
Neighborhood Update: Cory Lake Isles
Cory Lake Isles is a prestigious master planned community that competes with Tampa Palms, Arbor Greene, Hunter’s Green, and Grand Hampton for New Tampa home buyers. After years of dynamic appreciation and investor speculation, prices have declined to the point where buyers are now finding some great values in this lush, tropical neighborhood that features Tampa’s largest ski lake.
Currently there are 44 homes in Cory Lake Isles that have been for sale for an average of 170 days. The average listing has 4 bedrooms, 3 bathrooms, 3559 square feet, and an asking price of $591,632. Of these 44 Active Listings, 19 are short sales, 1 is a corporate relo, 1 is a bank owned foreclosure, and 25 are traditional homeowner sales. The average price per square foot of Active Listings is $150.
There are 18 homes under contract at the moment, with 17 of 18 being listed for under 430K and one having an list price of $1,100,000. Of the 18 homes under contract, 12 are short sales, 1 is a bank owned foreclosure, and 5 are traditional homeowner sales. While we do not know the final sale price yet, the average asking price per square foot of the homes under contract is $100.
As of 8/30/2009, 38 homes have sold/closed this year in Cory lake Isles. A deeper look at these transactions reveals that 82% of homes closed this year have been Bank Owned foreclosures or short sales, while only 18% were traditional homeowner sales. The average home (4 BR, 3 BA, 3309 sqft) sold for $355,945, which represented 95% of the final asking price and $104 per square foot.
For strategies to find the right home at the right price, contact Team Bohannon today. If you are looking to sell your home in Cory Lake Isles, contact the team that has sold over 150 homes in Cory Lake Isles for a plan to maximize your bottom line – Team Bohannon at (813) 979-4963.
New Tampa Home Sale Update
Low interest rates, rock bottom prices and the first-time home buyer tax credit have fueled home sales across the nation. To gauge the local impact of these forces, we analyze home sales in the New Tampa market, zip code 33647.
August 2009 MLS data shows that there were 357 single family homes for sale in New Tampa, while 96 homes went under contract, and 60 homes closed during the month. Compared to August 2008, there are now 39% fewer homes for sale, and 68% more homes went under contract during the same month. See the chart below for a 2 year view of New Tampa real estate market activity showing Active Listings (green), Contracts Pending (red line), and Closed Sales (gray):
Curious about the composition of the Active Listing Inventory in New Tampa? Think everything is a short sale? As of September 12, MLS data shows that there are 331 homes for sale in New Tampa. Of those, 14 are Banks Owned Foreclosures (REOs), 89 are short sales (pre-foreclosures), and 228 traditional listings (home owners & new home builders).
If we look at market segments, the under $200,000 market in New Tampa leads the way. For example, in August of 2008, just 13 out of 94 homes closed for under $200,000. In August 2009, 34 out of 77 homes went under contract. Realtors are reporting anecdotal evidence of shortage and multiple offer situations, and the data backs this up. While the number of sales has increased, however, prices have declined from an average of $91 per square foot to $79 per square foot from August 2008 to August 2009.
The New Tampa (33647) market includes: Tampa Palms, Hunters Green, Arbor Greene, Cory Lake Isles, Grand Hampton, West Meadows, Richmond Place, Live Oak Preserve, Pebble Creek, Cross Creek, Easton Park, Basset Creek, Heritage Isles and other neighborhoods. Click on the neighborhood above to see homes for sale. Contact Team Bohannon at 813-979-4973 to locate, negotiate and close on your dream home.
Expiring Tax Credit Drives Up Home Sales in Tampa
A Wall Street Journal article http://bizy.be/RWs21 reports that first-time home buyers are rushing close on home purchases before the November 30th deadline in order to take advantage of the $8000 first time-home buyer tax credit. To close a home by Nov. 30th, buyers should be under contract by late September. Now is not the time to begin a short sale purchase if you hope to close in time.
While the pace of Tampa Bay home sales has accelerated, one wonders if the demand will last once the tax credit expires. Much like the cash-for-clunkers program, we may find that sales were driven higher partly by cannibalizing future demand.
Tampa MLS data shows an increase in sales activity concentrated in the lower prices ranges. Overall, there are have been 1712 sales of single family homes since 6/1/2009, or 380 per month (out of 3,766 for sale). The median sale price of all homes was $139,000. Of the 1712 homes that sold in Tampa, 919 went for $150,000 or less; and an additional 219 homes sold for $151,000-$200,000….clearly first time home buyer territory.
The 1139 Tampa homes that sold for under $200,000 were on the market for 118 days on average, and closed for an average sale price of $96,645 (just $68 per square foot). Those looking for a home built since 2000 in the $100k-$200k price range paid on average $160,000 ($91 per square foot). These homes sold for an average of 95% of their final asking price. One year ago there were 12.2 months of inventory available. Today there are 6.1 months available.
Purchasers of homes costing over $200,000 paid an average of $398,214, or $142.30 per square foot. These 578 homes were on the market for an average of 150 days and sold for 94% of their final list price. One year ago there were 15.1 months of inventory available in this price range. Today there are 11.3 months available.
Act fast to take advantage of the first time-home buyer tax credit. Contact Team Bohannon today at 813-979-4963 to maximize your options and find the best value.
Bank Owned Foreclosures in Tampa – Are banks discounting?
Are banks are desperate to unload homes these days? Do you wonder if you might be able to buy a bank owned home for 25%-50% less than the asking price?
To find out, we examined sales of single family homes in New Tampa (33647) that had been through the foreclosure process. We found that 75 foreclosed homes were sold thus far in 2009 by various lenders as “bank owned foreclosures” (or about 8 per month).
When we compared the final listing price to the sales price, we discovered that foreclosed homes sold for an average of 3% below the asking price. That’s right, Tampa foreclosures sold for 97% of the bank’s asking price, often with multiple offers. Of the 75 foreclosures, 20 sold for over the asking price, 19 sold for the asking price (or within $1000); and 35 sold for just below the asking price.
For strategies to obtain the best value and lowest prices on homes, contact Team Bohannon today at 813-979-4963.
