Nibal Elsaadi

Over the past few weeks many news sources have released predictions for strong real estate stabilization in 2010. A recent article from NuWire credited the expansion and extension of the first time home buyer tax credit for the predicted stabilization and home sales increase. According to NuWire recent article, "Home Sales to Increase in 2010":

"After more than a three year downturn in the hardest hit areas of the nation, some markets have experienced slight rebounds, prompted by the first time buyers' tax incentive and low mortgage rates. But higher price ranges have been hindered in their recovery. However, momentum should gain strength in the second half of the year with expected improvements in mortgage lending and make strides towards stabilizing in 2010.

A series of interest rate cuts taking mortgage rates to near historic lows are one of the Fed's attempts to re-stimulate the housing market. But record foreclosures are producing a market that threatens to keep home prices at low levels for years to come. More than 19-million vacant homes sit empty in the U.S., much of which is an inventory that will have to be absorbed by home buyers before markets fully stabilize.

Still, signs of a recovery in housing are showing promise. As we maintained last year in our annual national forecast, improving conditions, however, do not signify that housing inflation or appreciation will develop in most areas for a number of years. The recovery will be a long haul."

Tampa's real estate recovery is underway. We have seen signs of real estate market stabilization throughout Tampa Bay, with appropriately priced Tampa homes spending fewer days on market, multiple offers being placed by first-time buyers and foreign investors, and sharply discounted homes being quickly absorbed.

We have even seen an increase in interest from Tampa home owners who were previously unable to sell their homes, now more interested in listing their property for sale. It surely is going to be a long haul but with positive signs becoming more and more prevalent, we are sure looking forward to what 2010 may have in store for the real estate market!

Recently listed by SI Real Estate Investments, this beautifully remodeled 4BR/2BA St. Petersburg home with attached garage will not last long. The single family home is situated on a large corner lot and has been fully renovated to include spectacular upgrades such as hard wood floors throughout, fresh interior paint, designer lighting and ceiling fans, and newly installed roof.

The upgrades in the kitchen of this St. Petersburg home are spectacular. With brand new 42" cabinets, new countertops, new ceramic tile flooring, and high-end stainless steel appliances, this spacious gourmet kitchen is a dream. Attention was paid to every detail in order to make this home shine.

Additional home features include formal living room, family room, open floor plan, ample closets throughout, master suite with walk-in closet and attached private mater bathroom, covered patio, fenced backyard and mature landscaping. There is also an area in the back of the home with additional parking room for a boat or RV.

New home owners will be able to walk to bus lines, shopping and great schools. The house is conveniently located in the quiet neighborhood of North Euclid in North St. Petersburg, just minutes from downtown St. Pete and the award winning beaches of Pinellas County. Commute to South Tampa, MacDill Air Force Base, and Tampa International Airport in less than 30 minutes.

This home is not a short sale and can close quickly, with buyer motivated and willing to offer concessions, including allowance for new exterior paint. The property is both FHA and VA approved and the seller will include home warranty to the new owner.

View other SI Real Estate property listings at www.SIRealEstateInvestments.com

Congress announced yesterday that the first-time home buyer tax credit, originally set to expire at the end of this month, will be extended through June of 2010. In addition to an extension, the bill includes a $6,500 credit for "move-up" buyers interested in purchasing a new primary residence.

The first-time home buyer tax credit has shown significant results in the Tampa Bay real estate market, with home sales soaring over the last three months. The Internal Revenue Services reported that more than 105,000 Floridians have applied for the credit so far. Now, under the new bill, an even larger base of potential buyers will be able to benefit and take advantage of the program.

The new plan is designed to spark interest in the "move-up" market, with these potential home buyers previous excluded for tax credit program. This additional incentive is designed to make real estate purchases even more desirable for qualified repeat buyers.

The tax credit, along with affordable home prices and low interested rates, has helped boost real estate home sales over the past year. The National Association of Realtors estimates that by the end of November, the credit will have been used by 1.8 million buyers, at least 355,000 of whom would not have purchased a home otherwise.

The new bill, which also includes an extension to unemployment benefits, is expected be signed into law today.

The U.S. Congress is currently discussing an extension and expansion to the $8,000 tax credit for first-time home buyers in a bill which has been instrumental in breathing life into the U.S. real estate market. With a decision expected to be made this week, Tampa builders, Tampa buyers and Tampa real estate professionals are all anxiously awaiting the good news that is expected to continue the positive momentum in the housing market movement.

With the current tax credit expiring on November 30th of 2009, this extension would give buyers until mid-2010 to close on a new home. In addition to the extension, an additional credit of $6,500 would be created for move-up buyers who are searching for a new primary residence.

The National Association of Home Builders expects that the extended and expanded home buyer tax credit will generate 180,000 additional sales, bring in $5 billion in federal taxes and create 211,000 new jobs. Home builders, who have recently been seeing progress in the market, will directly be affected from an extension, with new homes starts already expected to increase in 2010.

Tampa Bay home builders are highly motivated, currently offering an abundance of incentives to sell inventory of their new homes to qualified buyers. Our SI Real Estate professionals have seen an increase in outreach and enticements from new local communities and our expectation is that builder and seller incentives will continue at an irresistible pace for the near term. An extension to the tax credit partnered with this abundance of builder incentives would give Tampa buyers an ideal opportunity to find the perfect new home in the new year.

Economists Announce that the Three-Year Housing Slump is Coming to an End

The positive real estate and economic recovery news is hard to ignore these days. Although there may still be some mixed signals, overall economy and real estate trends look encouraging. Some of the most recent upbeat news this week was from one of the country's top group of forecasters. The National Association of Business Economists declared that the 22 month recession is finally over!

After its latest survey of members, the NABE stated "The good news is that the deep and long recession appears to be over, and with improving credit markets, the U.S. economy can return to solid growth next year without worrying about inflation." The association also said that the three-year downturn in the housing market appears close to an end.

As reported by BusinessWeek, more than 80 percent of economists believe the recession is over and an expansion has begun, although it is expected that the recovery will be slow as worries over unemployment and high federal debt persist.

The consensus forecast from the business economists is for the Gross Domestic Product (GDP) to grow by 2.9 percent, and for new housing starts to jump by an impressive 38 percent. Home resales tend to be closely tied with the GDP, meaning that positive growth for the GDP will result in positive growth for the national and local Tampa Bay real estate market.

Additional positive news for the real estate market is that home prices in many major metropolitan markets are continuing to bounce back. Although some are still seeing a decline, cities such as Boston and New York are reported to have experienced more than a 1 percent increase.

And even more positive news - the real estate market right now continues to enjoy mortgages at sharply discounted interest rates. Fixed 30 year rates averaged 5 percent last week, and 15 year rates came in at 4.4 percent.