It’s still a buyer’s market in the Tampa Bay area, as there’s still a ten-month supply of homes for sale in the region as of July.
Based on a recent report from Home Encounter LLC, new listings were being added, but home sales were slowing, so the inventory of homes for sale in the Tampa area has been rising. In July, new listings increased by 2.5 percent to a total of 4,626 homes and increased the total of homes in the market to a ten-month supply from nine months in July last year and from seven months in the previous month of June.
Housing analysts said that based on observations over the years, a six-month supply of homes is the supply level that balances out supply and demand. The number of months of supply indicates the number of months that all homes in the market are sold off at the existing pace of home sales. Nonetheless, the number of days that homes stayed on the market in the Tampa Bay area dropped in July by almost six percent to 216 days, down from 229 days in July last year.
Home Encounter said that home sales typically increase during the months of June and July, but sales during these months in 2010 were disappointing, as they plunged by a staggering 19.6 percent from total home sales in June and July last year. Housing market participants were even more disappointed as they hoped the price drop of more than five percent over the year would help push up home sales, but they didn’t.
In the Tampa Bay counties of Pinellas, Hillsborough and Pasco, home sales in July dropped by 19.6 percent over the year to a total of 2,396 units, which also marked a sharp plunge of over 30 percent from the previous month. The average price for homes sold was $93 per square foot, down by five percent on a year-over-year basis. The average price discount obtained by buyers was 4.6 percent, down by 40 percent over the year, but up by 21 percent compared to June.
The report from Home Encounter also showed that foreclosure sales and short sales still made up a significant portion of home sales in July. They’re still pushing down prices, as they’re still sold at prices up to 50 percent cheaper than comparable new homes. In Polk County, foreclosed homes and distressed homes accounted for 49 percent of all homes sold in July, an increase of four percent from the previous month. Short sale homes accounted for 22 percent while bank-owned homes accounted for 28 percent.
Short sale homes were selling for $80.66 per square foot, or 76 percent of normal sales prices, while bank-owned homes were selling for $53.64 per square foot, or 50 percent of normal sales prices.