For a few years now, consumers from Florida to California have been hearing more and more that now is the time to buy your home, or real estate in general. Well that time is now quickly passing by as home prices continue to push upward. The S & P home price index showed improvements for the second straight month in 19 of the 20 cities they are tracking. Tampa, Florida is high on the list of cities being tracked. Not only is our local Tampa real estate market our performing most, but as whole national prices rose 1.3% in the last month of the first quarter. It is indisputable that we are seeing the consistent upward movement in housing prices. The first time in over six months that national prices are also showing such an increase. This is the hottest real estate news this week! MSNBC and all major networks are giving this news its proper headline… Real Estate News: Prices are UP!
Sales of newly constructed and re-sale homes are also up! People are viewing the purchase of a new home as a more significant sound investment. Another positive component is that stemming from home prices moving upward, many buyers are gaining confidence in regard to home appreciation; and are real estate buyers are more willing to make an investment in a home in which they clearly see value . The fear of falling prices has taken a back seat and is now in the rear view mirror. Increased buyer confidence, supply and demand are both fueling the rising prices.
These and other factors directly impact new construction. So much so that last month builders requested more permits to build homes and apartments than in the last three in half years! Homebuilder stock spiked upwards after this data was released. Lennar, Pulte, and DR Horton all saw favorable stock increases from 3%-5%. Tampa, Florida is home to some of these major communities and has seen inventory drop in many of these new construction communities. The inventory of previously occupied homes is back down to levels we saw in 2006. In May 2012, there were only 145,000 new homes for sale. That figure is barely higher than April 2012 which recorded the least amount to new homes for sale since 1963.
Buyer confidence coupled with record low mortgage rates are leading to an increased number of consumers ready to make a purchase. As home prices rise in major cities like Tampa, Florida, consumers are encouraged to analyze their real estate goals and make decisions that will help them in the future.
SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”