by Rae Catanese on April 27, 2010
This report is for South Tampa Neighborhoods, Zip Codes: 33606, 33609, 33611, 33629
Looking for some good news? One of the BEST Neighborhoods in Tampa is showing signs of a rebound. Take a look at the number of transactions in South Tampa and you will see some relatively strong numbers. In fact, March closings were up a whopping 57% as compared to last year, producing the highest number of transactions in a single month since the glory days of 2006. The increase started in June of 2009 and, other than a really bad January, we have consistently outpaced the previous two years.
Demand is strong, financing has loosened up, and the tax credit is making a difference. But most of all, it is price that's making the market move. At $136 per square foot, the average sales price in South Tampa has dropped 42% in 3 years, making homes more affordable and bringing Buyers off the sidelines and into the
game. See? I told you there was some good news.
|From Downtown Tampa|
Unless you're a Seller. And especially if you're selling a home above $400K. The lower end of the market is what's heated up, while the upper end remains frozen. We think there are a number of factors at work here, but just as price is making the lower market move, it is price that's making the upper market stagnate.
Just for fun we looked at the price on homes currently for sale between $400K and $600K, and found the average to be $215 per square foot. Compare that to the price on everything in that price range that sold in the last quarter, and the average is $172 per square foot - a 20% differential. It becomes very
clear that this index is a real dividing line, and that Buyers are just not going to move on properties priced above the line. Sellers have not been willing to adjust their thinking - or their price - and so the market just sits there.
And so the "Good News, Bad News" saga continues. Homes below $400K are selling and prices have stabilized. Above $400K is a different story. Until Sellers on the upper end accept the new reality as those on the lower end have done, that market will continue to flounder, and I'm not talking fish.
This is a guest post by:
Bruce Tigert-Bayshore Title,-Tampa, Fl