The decline in the supply of homes for sale in Tampa that started in April 2008 continues in 2012, as shown in charts published by the Greater Tampa Association of Realtors (GTAR). In January this year, the number of listed homes dropped by 10.23% over the month and by a whopping 43.48% over the year to 9,134 units.
Over the four-year period from February 2008, when the total number of Tampa homes for sale was 21,468, the total rate of drop was a staggering 57.45%. Back then, the housing inventory was calculated to last for 22 months; in January, available inventory was deemed to last for only 6.7 months.
What could be the reasons for the decline in inventory? And is this a good sign for the Tampa real estate market? The decline is a positive sign for the Tampa market in the sense that the following factors could have been causing the decline:
1. Rise in Tampa home sales
Monthly sales of Tampa homes, condos, villas and other types of homes had sharp increases in 2011, surpassing the 2,000-unit level, which was never surpassed in 2008 and 2009, and only once surpassed in 2010. The biggest monthly sale in 2011 was March’s sale of 2,281 units, with four other months going past the 2,000-unit level. In 2008, the average monthly sale was only 1,307 units.
2. Quick Sale of Bank-Owned Properties
Bank-owned properties, particularly those offered at big price discounts, don’t stay long on the market. They’re quickly snapped up by investors who have established relationships with the banks. Most often, prospective buyers looking for lower-priced REOs only have a few listings to look at. As this is being written, there are only five bank-owned homes in the Tampa area listed at $50,000.
3. Decrease in Pre-foreclosures and Foreclosures
In 2011, foreclosure listings nationwide decreased by 34% from 2010 listings. Both the foreclosure rate and the foreclosure count dropped to their lowest levels since 2007. In 45 states, including Florida, foreclosure activity slowed significantly. Florida dropped sharply in the Top Ten States with the Highest Foreclosure Rates chart from being third in 2010 to seventh in 2011. Florida’s foreclosure rate dropped by almost 63 percent from 5.56% in 2010 to 2.06% in 2011.
One good effect of the declining number of homes for sale in Tampa is that it could prompt fence-sitting buyers to finally act on their home purchase plans. The inventory decline could finally convince them that prices have bottomed and that it’s a good time to buy. Another positive effect on the housing market is the increase in home prices.
View homes for sale in Tampa now while they’re still available.