Has the Market Finally Bottomed in Tampa Bay Florida?
Full Article on this web site http://www.topteamweb.com/investorinfo-updates.html
Record-low mortgage rates, pent-up demand and a large selection of properties bode well for Buyers. The Hot Florida real estate market from 2003 to 2005 has dissipated. From 2006 to the present, there has been an increasing inventory of listings with asking prices well below the actual purchase price. The majority were speculators that got caught up in the frenzy. No one can predict the bottom for national, regional or even local real estate. The one thing that is certain is the amount of bargains that now exist...that may not be on the market for those waiting for the bottom.
A detailed comparable analysis, days on the market, sellers purchase price, sellers current mortgage outstanding, use as an investment or permanent residence is the first step to review on any property that interests. The second step is not to deal with the Sellers Listing Agent...but to use a Buyers Agent... with strong experienced negotiating skills to help you determine an offering price on the property you want to purchase.
Forbes magazine sought areas where prices wouldn't fall cataclysmically, so that buyers wouldn't be booking a fare on a sinking ship. Based on Moody's figures, Tampa Bay home prices should bottom out in the first quarter of 2008, once the region burns off excess inventory from speculators who went hog wild in 2005. Each transaction is individual.
Many recent sales were rock bottom purchases for the Buyers. A few recent examples for your consideration..........
2BR 2BA Waterfront Condo MLS #: 7256439 Orig List Price: $525,000 Reduced to List Price: $484,500 2007 SOLD Sales Price: $250,000
Address: 895 Gulfview Blvd S 303 Clearwater, FL 3BR 2BA Waterfont Condo MLS #: 7251356 Orig List Price: $639,000 Reduced List Price: $574,000 SOLD Sales Price: $480,000
Address: 530 Gulfview Blvd S 702 Clearwater Year Built: 2006 2BR 2BA Gulf Front Condo Clearwater Beach Orig List Price: $524,900 - SOLD Sales Price $406,250
As of 1/31/08 this one is still on the market Gulf Front Condo Clearwater Beach Asking $369,000 - Three years ago it would have sold for $490,000 to $540,000
The bottomed has been reached ... if you do your homework...and find the properties that are well below appraised value.
Tallahassee Fla - Jan. 30, 2008 - Realtors around the state expect buyers and sellers’ pent up demand to generate an immediate increase in home sales following passage of Amendment 1, which allows buyers to take their Save Our Homes tax savings with them when they move. “People who buy now are getting a great deal because home prices have fallen,” says 2007 FAR President and St. Petersburg Realtor Nancy Riley. “These price reductions, combined with portability, will mean a great deal on the taxes owed on their new home.” "Those who have been dreaming of buying their first home will find this the best market in many years,” Riley adds.
Monday, May 12, 2008
Continued from 2005 - http://www.topteamweb.com/investorinfo.html
Everyone has a "ball park estimate" about the future profits of their potential real estate purchase. For Investment Condos - What return do you anticipate or must have on the rental income and the price appreciation to consider making a purchase?
Past performance is no guarantee of Future Results. We advise our buyers to avoid buying any properties that rely on ongoing appreciation similar to the past in order for the deal to still make sense. We try to locate properties based on sound fundamentals that will weather potential readjustments in the economy. The real estate market has always been flexible. The Sale Price has always been what a seller and buyer agree to accept to close a deal. In the last three to four years in many florida areas ...a percentage of sellers and buyers have agreed to close deals at ...and above ...the asking price.
Gulf Front...Waterfront and Investment Properties are best examples of this trend. In the middle of 2005 we have noticed that the trend has abated somewhat and asking prices are trending downward.
OVERPRICING - Early 2005 Example - MLS# 7097049 Asking Price $275,000 Address: 530 Mandalay Ave Clearwater Beach 560SqFt - 2 Bed - 1 Bath - Previously in 2005 was asking $170k then $190k then $210k and now $275k....the seller increased the price every time there was an offer at the lower price. We contacted the listing agent thinking there was a legitimate reason and asked for rental income - Annual Rental income in 2004 was $5,444.00 - (withdrawn from the market May 10, 2005)
Example #MLS 7083580 - 7 Day Rental - Reduced from $439K January 2005 then $398K March 2005 then to 365,000 then withdrawn from the market on May 11, 2005 Overpricing and Negotiating in the best interests of a Buyer
Example- MLS # 7076244- Overpriced Asking Price: $420,000 30 Day Waterfront Investment Condo - Sold Price: $325,000
Everyone has a "ball park estimate" about the future profits of their potential real estate purchase. For Investment Condos - What return do you anticipate or must have on the rental income and the price appreciation to consider making a purchase?
Past performance is no guarantee of Future Results. We advise our buyers to avoid buying any properties that rely on ongoing appreciation similar to the past in order for the deal to still make sense. We try to locate properties based on sound fundamentals that will weather potential readjustments in the economy. The real estate market has always been flexible. The Sale Price has always been what a seller and buyer agree to accept to close a deal. In the last three to four years in many florida areas ...a percentage of sellers and buyers have agreed to close deals at ...and above ...the asking price.
Gulf Front...Waterfront and Investment Properties are best examples of this trend. In the middle of 2005 we have noticed that the trend has abated somewhat and asking prices are trending downward.
OVERPRICING - Early 2005 Example - MLS# 7097049 Asking Price $275,000 Address: 530 Mandalay Ave Clearwater Beach 560SqFt - 2 Bed - 1 Bath - Previously in 2005 was asking $170k then $190k then $210k and now $275k....the seller increased the price every time there was an offer at the lower price. We contacted the listing agent thinking there was a legitimate reason and asked for rental income - Annual Rental income in 2004 was $5,444.00 - (withdrawn from the market May 10, 2005)
Example #MLS 7083580 - 7 Day Rental - Reduced from $439K January 2005 then $398K March 2005 then to 365,000 then withdrawn from the market on May 11, 2005 Overpricing and Negotiating in the best interests of a Buyer
Example- MLS # 7076244- Overpriced Asking Price: $420,000 30 Day Waterfront Investment Condo - Sold Price: $325,000
I wrote this for my clients in 2005 -full link - http://www.topteamweb.com/inverstorinfo.html
Beginning in April 2005 - There were many indicators that the market was due to correct.The information below was sent to our potential and current real estate investors by The Top TeamPlease take a few minutes to read this before consulting with us about any Real Estate Investment.We all hope that this booming real estate market will continue for years to come and never experience a slowdown.But as honest real estate professionals, we must be prudent and advise our buyers that the facts indicate a slump.
April 2005- We predict that you may be soon reading or hearing about "a real estate bubble" similar to the internet dot com bubble. The Tampa Bay market is not immune from any national downturns...but past, present and future analysis predicts that we will fair much better than the rest of the nation due to the fact that we are a vacation, retirement and economicallysolid area. We think positive and prudently in hot markets, flat markets and even down markets. It's positive thinking combined with sound decision making that will produce the results we want to achieve for our buyers. We will not exaggerate about the "Potential for the Future" on any Investment. We rely on facts and not predictions.
Beginning in April 2005 - There were many indicators that the market was due to correct.The information below was sent to our potential and current real estate investors by The Top TeamPlease take a few minutes to read this before consulting with us about any Real Estate Investment.We all hope that this booming real estate market will continue for years to come and never experience a slowdown.But as honest real estate professionals, we must be prudent and advise our buyers that the facts indicate a slump.
April 2005- We predict that you may be soon reading or hearing about "a real estate bubble" similar to the internet dot com bubble. The Tampa Bay market is not immune from any national downturns...but past, present and future analysis predicts that we will fair much better than the rest of the nation due to the fact that we are a vacation, retirement and economicallysolid area. We think positive and prudently in hot markets, flat markets and even down markets. It's positive thinking combined with sound decision making that will produce the results we want to achieve for our buyers. We will not exaggerate about the "Potential for the Future" on any Investment. We rely on facts and not predictions.
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