CNN Money-Tampa-St.Pete,-Clearwater Home Prices fell 20.6%

The Median Sales Price, for the Tampa, St. Petersburg and Clearwater areas has dropped 20% to $173,400 from October 2007 to October 2008

A flood of foreclosures has driven home prices down. As many as 40% of all sales made during the three months that ended Sept. 30 were short sales properties repossessed by banks. These are eager sellers. The longer the banks hold the vacant homes, the more it costs them in maintenance, taxes and insurance.

“A very large proportion of distressed home sales are taking place at discounted prices compared to more normal conditions a year ago,” said NAR President Charles McMillan.

Short sales are prior to the bank taking posession of a home.  As a Realtor in the Tampa, Fl Market, I am noticing a large difference between pricing of short sales and bank owned (foreclosures), with the bank owned being a better deal.

My speculation is that the bank owned properties will be sold faster due to the price difference.  We are noticing that people are realizing that there are so many great deals, that the interest levels and sales have picked up.  It’s important NOT to compare the national market to our housing market.  The Tampa Bay area, is number 2 in the Nation for foreclosures!