I found another positive news article from Inman news addressing the Tampa Bay Area Housing Market. This study shows that Tampa is in the top 20 for appreciation and is a very good sign that now is the best time to buy a house. It also compares costs of owning versus renting in our market which on a US study is encouraging. It seems that they are basing this study on the current purchase prices of homes, which has become extremly affordable and the future potential to gain equity within 3-4 years.
Statistics have shown the Florida Real Estate Market is much different than many other markets across the country. One, we have foreign money coming into our state from investors looking to get a great deal, two people still want to move to the Sunshine State!
Prospects for buyers improve
Study: Upside by 2012 seen in two-thirds of markets
By Inman News, Tuesday, October 28, 2008. Inman News
Purchase a home in 67 of the nation’s 100 largest metropolitan areas and you should be able to build positive equity by 2012, according to a new study comparing ownership and rental costs.
The report from the Center for Economic and Policy Research concluded that prospects for building equity by 2012 have improved somewhat in 36 cities, compared with an analysis performed in the spring. In many markets, declines in house prices and modest increases in rents are helping return rent-to-price ratios closer to historical levels, the report found.
NEGATIVE Equity POSITIVE Equity
The study defined a bubble market as an area where the median home price exceeds annual rent by 18 times or more. An area where monthly rent averages $1,500 a month, for example, would be considred a bubble market if the median home price exceeded $324,000 Our Median Home Sale Price in the Tampa Market as of October 26 2008 for TAMPA is $204,939. You can track median home sales prices and Trends by visiting Altos Reasearch here