Aol Money and Finance posted an article about the Best Places to buy a second home or vacation home. I decided to do some research based on their criteria for a smart Vacation Home Buy.

What Makes a Smart Vacation Home Buy?

1. Affordable: homes for less than $350K

2. Convenient: less than three hours from a major city

3. Active vacation rental market

4. Plenty to do.

5. Room to grow: an unsaturated market, situated near upscale destinations

Anyone would agree that the Tampa Bay area fits into their criteria of top 10 list of best places to buy a home. Based on the article, the recommended price of a vacation home investment to be no more than 350,000.

 First, I searched our MLS database for homes for sale, which includes townhomes and condos. I based my search on a tri-county area Hillsborough, Pinellas and Pasco Counties. 

For those of you not familiar with counties in our area the citites include: Tampa, St. Petersburg, Clearwater, Palm Harbor, Safety Harbor Land O’ Lakes, Wesley Chapel, Brandon, All the Beaches, Harbour Island and Davis Islands.

The first thing I wanted to know was how many homes were on the market.  Are you ready for this?

The numbers for housing inventory at 350K or under.  The average home is a 3 bedroom, 2 bathroom, 1,454 sq ft. 

in August of 2008 there were:  29,874 active homes for sale. 

The average sales price was $154,616.

Moving ahead to May of 2010 the inventory has decreased to 21,404, indicating our market is stabilizing.  

Our average sales price is now $130,501.

If you would like to search the MLS database go to www.tampabaydwellings.com  You can search property in all 3 counties, save favorites, and schedule showings. Or contact a Real Estate Agent 813 784 7744 for questions.

Figures recently released by Florida Realtors show a changed housing market punctuated by levels that can be likened to the more normal events of the  ‘pre-boom’ era of 2002.  

 Reports illustrate that in 2009, home sales rose statewide 31 percent with a total of 163,148 homes sold compared to 124,168 homes sold in 2008.  Florida’s median sales price at year-end 2009 was $142,600.  Statewide sales of existing condos increased 47 percent compared to year-end 2008.   

Here, in the Tampa Bay area, 2009 home sales were up 21 percent with 28,617 homes sold.  Even more impressive is that condo sales were up 40 percent in 2009 over the previous year. Back track to 2002 when approximately 26,000 homes were sold and the median price was $133,300.   (Forget about 2005, a time everyone will agree was grossly over-valued when more than 53,000 homes were sold in the Tampa Bay area—more than double that of 2002.  Those days were anything but ‘normal’ 

Towers of Channelside Condos

 Click Here to See information on Towers of Channelside 

 It is encouraging to note here that December’s median prices finished higher than final figures compiled for 2009, which is a good indication of recovery—possibly as early as spring according to industry analysts.  The outlook appears even brighter when taking into consideration the federal tax credit which is scheduled to expire in June.  NAR Chief Economist Lawrence Yun said an additional 900,000 first-time buyers will qualify for the tax credit beyond the 2 million nationwide who have already purchased.  And now 1.5 million repeat buyers are also expected to benefit from the credit. 

View all Condos, Homes and Waterfront Property in Tampa Bay. 

The upside of Florida real estate: 15 market positives

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market.

1. Great prices. Statewide, the existing-home median sales price was $161,200 in the fourth quarter of 2008; a year earlier, it was $216,600 for a decrease of 26 percent.

2. The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon. In fourth quarter 2008, statewide sales of existing single-family homes were up 13 percent compared to the same period last year, according to FAR statistics.

From Seminole Heights Bungalow-Tampa

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is still plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2009 includes an $8,000 tax credit for first-time buyers. President Obama’s 2009 economic stimulus package also identifies and offers incentives to help home buyers with mortgages. Talk to a local mortgage lender about state and federal incentive programs.

• How to get the $8,000 credit. 

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida’s population is expected to swell about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes.  All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.

9. Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here. Even with the current economic downturn nationwide, Florida leaders continue to keep business needs in the forefront of planning for the state’s future. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.

10. Positive investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. “People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” said Dr. Wayne Archer, director. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”

11. Homeownership has value. Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax.  It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey.

Visit our website to search all homes in Tampa Bay. Get a market analysis on your home, or just drop us a line. realtyrae@yahoo.com

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Prudential Tropical Realty Announces First Quarter Increase

 TAMPA BAY, FL -  Prudential Tropical Realty announced this week that it has posted an increase in sales during the first quarter of 2009.  During the time period of January – March, 2009 the company posted a 20 percent increase over Jan.-March 2008 in pending dollar volume.  Even more encouraging is that the company saw an increase in closed dollar volume of approximately 39 percent over the previous year.  

  This latest trend may be an indication that buyers are beginning to realize the benefits of buying now vs. waiting until later.  “A better understanding of true market value, coupled with the lowest mortgage interest rates in more than 30 years, have at long last motivated buyers to move off the fence and make a home purchase,” explained Dewey Mitchell, Broker/Owner, Prudential Tropical Realty.

 Furthermore, according to a February report produced by the Greater Tampa Association of Realtors, the Tampa Bay area is now experiencing a nine month supply of housing inventory.  This is a significant improvement over the same time period in 2008 during which there was a 14 month supply of homes.

To View all homes for sale in the Tampa Bay area visit our website.  You can also see what homes are selling for in your neighborhood and get a comparable market analysis.

Call us about listing or buying your home. Get results!

813 784 7744-Rae Catanese, PA-Real Estate Agent

In the Tampa Bay Area defining a luxury home community usually means a large waterfront home in a desirable neighborhood.  How is Tampa, Florida’s Real Estate Market performing in high end home sales?

I compiled statistics from the Tampa MLS.  As of May 2009, there are approximately 109 active listings between 1m-2m for sale in Hillsborough County.

Current Active Waterfront Homes on the market: 109 total homes

The average home is a 4b/3b, slightly over 4,100 sq ft and waterfront. These properties are either bay front, lake, or riverfront for purposes of this comparison.  Producing an average list price at 1,457,000 and $366.00 per sq ft.

Comparing Active and Sold Listings:  51 sold homes in the past year

I used the same search criteria based on the sold homes between May of 08 to date, May 09.  The comps are as follows:

The average list price for the past year was 1.7m, Average sold price of 1.5m, and sold price per sq ft is approximately 340.00.  It took 347 days on average to sell these 51 homes.

It would appear by the numbers, that the listing prices are sliding downward from the year prior. It is not just the lower end real estate market being effected by our economy. 

If we look at the stats, only 1/2 of these luxury homes will sell in the next year.  As of April 2009 there have been 27 homes sold over 1 Millon Dollars in Tampa. The good news is that we are on track to sell the same amount of homes in the same price bracket this year.

For sellers who want to sell their home you’ll need to be priced accordingly. Be flexible on pricing your home to sell.  Buyers have to choose from over 100 homes for sale just in Tampa. Pinellas County is also quite competitive for those who want to be closer to the beach.

If you would like to speak with a Real Estate Agent about buying or selling your home, please contact Rae Catanese 813 784 7744 or email: realtyrae@yahoo.com

View all homes for sale in the Tampa Bay Area, see what homes are selling for in your neighborhood or request more information