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A drop in the bucket, but it's a big DROP!

By
Real Estate Agent with Keller Williams Tampa Properties

Much has been said recently about the sudden "housing shortage" throughout much of the United States.  Many markets are seeing bidding wars erupt for some of the available homes and the "days on market" times have been significantly reduced.

Here in Tampa we are one of the markets seeing a greatly reduced inventory and the bidding wars, but how long will this situation last?  We most definitely want to return to a steady growth in home values, but we shouldn't/can't (if we a smart and learned anything from the huge run up of prices in the 2002 -2006 period) afford to have the market overheat too quickly.

A recent article in the Tampa Bay Times  by Times Staff Writer Drew Harwell Landrush discusses several deep-pocketed investment groups, among them Blackstone Group, that have purchased 1000 Tampa Bay homes and spent $150 million dollars to do so.  In total, the Blackstone Group has spent approximately $3.5 billion across the country to purchase residences that it plans to turn into rentals.  They are betting that the American Dream of home ownership is over and that in the future more people will choose to rent than to buy.

We'll see!

 

Homeownership

 

Over the past 6 years home ownership is down; but the mortgage meltdown led to this situation, not people's attitude toward home ownership.  I field calls weekly from individual's who have a short sale or foreclosure in their background and are interested in trying to purchase another home!

Mass purchases like these by the Blackstone Group will have a short term effect on the number of available properties and the price paid.  As the available funds of these big investments groups dries up and the local markets settle back into a normal selling cycle can the price increases be sustained?  Maybe, maybe not!

A little over a week ago I wrote about Tampa Bay's #4 national ranking in foreclosures, Tampa Bay - 4th in Foreclosures, but we're not trying to be #1  Unfortunately, markets number 1 -3 are also in Florida, making us the clear cut foreclosure capital of the United States. 

As these foreclosures begin to be appear and as fence sitting sellers decide to list their homes, the increased availability will help cool home prices and allow for a return to  a more "normal" marketplace.

Purchases by Blackstone and other investment groups were just a drop in the bucket compared to all of the homes that will need to be sold to completely end the past 6 years of the housing crisis!

 

Posted by

Real Estate Vet - Curing Tampa Bay's Mortgage Meltdown One Home At A Time.  Will your Home Be next?

David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I get their insight and applaud them for looking beyond what is easily visible to most. The questions isn't always as much rent vs buy but its more "IF I rent will my landlord make their payments" or "how long can I stay"?

The best part of homeownership, aside from the place to raise your family or live your life where you choose is that YOU get to make the decisions on paying your payments, how long you can stay or if someone offers you a tremendous price do you choose to sell.

To me its more control by owning than a financial decision but admittedly its nice to see the gains and know you have a roof over your head regardless of what goes on in this crazy world

Mar 25, 2013 03:16 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Hopefully in the next two years homeownership will move back up. It's tough even now for those boomerang buyers (those who lost their homes to foreclosure or short sale) to buy again today. Very competitive market. Thanks for your post today, 

Mar 25, 2013 03:53 PM
Debi Braulik
www.roundrealestate.com - Maple Valley, WA
Selling Maple Valley to Fife WA Homes For Sale

Wow. The Blackstone Group's numbers are amazing. I don't think the dream of homeownership is over either. It's still a dream for many people. Unfortunately this tough economy is hindering a lot of them from coming up with their downpayment. 

Mar 25, 2013 04:29 PM
John F Muscarella
RIVER FARM PROPERTIES, LLC - Venice, FL
Broker/Owner, Venice, FL, Florida's Suncoast

I suspect you will begin to see the next wave of babyboomers start buying this year as they see prices being relatively cheap and want to prepare for their retirement.  New construction seems to be coming back in your area.  Do you see this?

Mar 25, 2013 06:50 PM