CNN MONEY Report, Housing: Best time to buy in four years-Tampa, Fl

Home values have declined across the country, giving homebuyers the best buys they've had since 2004.

By Les Christie, CNNMoney.com staff writer
Last Updated: March 5, 2008: 10:40 PM EST

NEW YORK (CNNMoney.com) -- It may be the best time to buy a house in more than four years.

Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they've been since 2004, according to a report.

The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.

"Housing valuations are almost back to long-term norms," said National City's chief economist, Richard DeKaser. He called current affordability "the best in the past four years."
But DeKaser cautioned that home prices could fall even further.

"This isn't to say home price declines are over," he said. "We could move below historic norms. By the end of 2008, housing markets could be broadly under valued."

"Declines are no longer confined to once-frothy markets," said DeKaser. The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there's reason to believe that valuations are even more favorable for buyers today.

Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.

The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.

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Feel free to email or call us 813-784-7744
Rae Catanese and Michelle Jordan
Realtors.

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When is a good time to buy Real Estate-Tampa, Fl

When is a good time to invest in Real Estate?

By: Rae Catanese, Realtor

Hyde Park Place-Condo

I was speaking with a friend of mine about the Real Estate Market in the Tampa Bay are, I wanted to give her the best advice in my opinion as a Real Estate Agent.

Through our website, we are able to track what people are searching for when they go online. Over the past couple months we've seen an increase in people wanting to know when the Real Estate Market is going to change, and the big question "when is the right time to buy"?

Right now sellers do not have their homes on the market unless they are in a situation where they really need to sell. At first, about a year and a half ago when our market started declining if sellers couldn't sell then they just decided to rent. Because of all the condo conversions in our area there were plenty of renters to go around. Now finding a renter who can cover the mortgage has become a struggle as well due to a surplus of rentals.

Most of the media and talk on the street says that the market won't rebound until late 2008 and maybe even 2009 in some areas.

These are the reasons I feel now is the BEST time to purchase.

1. If you can find a seller who purchased 4-5 years ago minimum chances are they have some equity in there home and can be more flexible with their price. They may have it on the market for 250,00 for instance but if they are in a situation that cannot be changed; such as divorce, relocation for a job, they need the money etc. they are going to be more likely to take a much lower price, let's say between 200-225K.

2. If the home is vacant that's even better! Now there's no income AND they want to sell. Sellers are very motivated NOW because they are hearing the same news as everyone else, and they know it may take another year to sell if they keep their price the same and aren't the lowest price in their neighborhood.

3. If you wait until people start hearing the market is rebounding then sellers will think they can hold out to get a better deal, stop dropping their prices and become less motivated. Or even worse, people who really don't have to sell as urgently will start putting their homes on the market creating even more inventory which is something our market does not need.

These are the trends that we as Real Estate Agents are seeing in our market. What buyers may not realize is that sellers who have had their home on the market for a year, don't want to wait or cannot afford to wait another year until things pick up.

Buyers who wait much longer are going to find that everyone who also has been waiting will now become their competition. Interest rates are the lowest they have been right now. When things start rebounding they could go back up again which is also something to keep in mind.

Benefits of using a Realtor
As Realtors we have access to how long a property has been on the market, the amount of price reductions they have had since they listed the property and if the home is vacant. This knowledge is critical in getting a good deal and taking advantage of the buyer's market that we are in.

If you are looking to purchase a home and have been on the fence, I would encourage people to take a look now and see what type of deals sellers are willing to make.

If you are thinking of buying a home anywhere in the Tampa Bay Area please feel free to contact us with any questions.

Rae Catanese, Realtor
Prudential Tropical Realty
813-784-7744

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Has the bottom of the Real Estate Market already hit? Tampa, Fl

Waiting For the Bottom That May Have Already Hit?
by M. Anthony Carr

I've been getting asked this question now more than ever: "Is now a good time to buy a house?" Many buyers have been waiting for the bottom of the real estate market to hit before getting off the fence to make that next real estate purchase. When it has been officially deemed a buyers market by all the national real estate associations -- then yes, it's a good time to buy. You just better hope you haven't waited too late.

Could it be that the buyers market has begun to subside and we're going to return to the "glory" days of yesteryear? Hopefully not. Having less than a 1 month's supply of houses to serve a community of 1 million-plus, is not healthy. The good thing about the inventory (and this doesn't include the new homes) is that it's now going to take a while to eat up that inventory, which means buyers have a while now to choose from the homes they want and purchase with cheap money.

Ask most realtors in your market area about buyers' and sellers' movement in the marketplace and you'll find out the same result -- buyers are waiting for the bottom to hit and sellers are holding onto prices (or removing their homes from the market).
With this latest analysis, it may be that we've actually hit the bottom. So to answer the question: "Is now a good time to buy?"

Here's why I think buyers should get off the fence, get financed and purchase a home.

Money is cheap. We have historically low interest rates. Currently, for most borrowers, they can nab a mortgage in the 6-ish percentage range. Depending on the points you want to pay (and for those with good credit), loan rates are from 6.75 and down.

Inventory is high. This results in two things -- choice and negotiation power. For sellers who are set to take opportunity by the horns and get moving, the buyer can get thousands off the list price so the seller can turn around and do the same thing. Most sellers, in this market at least, can afford to take a $25,000 - $50,000 hit on the sales price because they'll be able to negotiate the same type deal on the backside of the transaction. (In some communities, there's more than a year's supply of houses on the market.)

Income is growing. The stock market is on the march, resulting in a growth of personal income and wealth. This also contributes to the buying power of buyers.
Is it a good time to purchase a home? Well, they don't call it a buyers market for nothing.

Published: November 24, 2006


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