Nibal Elsaadi

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.

The deadline is quickly approaching for potential home buyers to complete their first-time home purchases in order to qualify for the $8,000 first-time home buyer tax credit. Buyers who are eager to take advantage of this government incentive have until November 30th to reach a successful closing on their new home.

The average home buying process typically takes 30 to 45 days from the contract date to closing. During that time, inspections must be conducted, the mortgage company must complete an appraisal and all financial documents are required. In order to meet the looming deadline for the tax credit, a home needs to be under contract not much later than October 25th in order to ensure enough time for the mortgage closing process.

It's important for people to recognize that the sooner they act, the better. Many first time buyers may not fully understand the time it takes to finalize all the elements of the buying process. In order to avoid additional complications that may slow the buying process, buyers should simultaneously organize all financing details when placing an offer on a home.

The real estate market in Tampa Bay has changed drastically for buyers seeking low priced properties. Tampa home buyers are competing with multiple offers and depleting inventory of aggressively priced homes. First-time home buyers need to be vigilant and ready to compete during these final days leading up to the end of October.

The combination of near historically low interest rates, favorable pricing, along with the $8,000 credit, makes buying now the deal of the century. If you have been considering home ownership, now is the time to act. Do not miss out on the unprecedented low prices and dramatically low interest rates.

The tax credit is for first-time home buyers only. For the tax credit program, the Internal Revenue Service defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The IRS reports, so far, more than 1.4 million Americans have taken advantage of the tax incentive. Are you ready take the step towards home ownership?

The housing inventory is moving quickly in the Tampa Bay area, a definite change from previous months. Buyers who are looking for rock bottom prices are finding their search to be more difficult than originally expected. Multiple offers, fewer days on the market, and a rise in home sale prices are all evidence of this new market shift in the Tampa Bay area real estate market.

For example, three months ago the Mid-Florida Regional Multiple Listing Service reported over 600 bank-owned properties in Tampa Bay. This number has now been reduced to fewer than 370, as the inventory continues to be quickly absorbed. In 2008 we were looking at a vastly different real estate inventory with a much higher number of bank-owned and short sale homes in Tampa, giving buyers a wide selection to choose from. In our current condition, buyers who are looking for a "best buy" need to be ready to act fast. With multiple offers being placed on low-priced real estate, sellers are now receiving offers at even higher than the listing price.

Tampa home buyers are facing a competitive housing market, with sellers now frequently asking for best and highest offers. This shift in the market has been particularly difficult for first-time home buyers, with many now faced with having to make offers on multiple properties only to find out that they were outbid by another buyer. Good deals for first-time home buyers are becoming fewer and further between in Tampa. If prospective buyers do not act quickly, it could mean a missed opportunity to take advantage of this exciting Tampa Bay real estate market.

Read more at: www.SouthTampaRealEstate.blogspot.com

The backlog of foreclosed homes hitting the market is slowing the housing recovery in Florida. However, the Sunshine State is still proving its resilience with improving home sales for more than a year and is starting to show signs of a steady stabilization.

Tampa area home sales are rising as the inventory of foreclosures is being absorbed by new home owners and those seeking a vacation home in the Florida sunshine. But the pattern of sales has been erratic with some months recording higher sales only to decline the next.

The $8,000 federal tax credit for first-time home buyers is helping to move the real estate inventory in the Tampa Bay area. There is clearly a sense of urgency and buyers are acting now and purchasing their dream homes. A large portion of sales are foreclosed properties and new construction that bankers and builders are slashing the prices on to move the inventory before more foreclosures and distressed properties hit the marketplace. The sooner Tampa's low priced properties are absorbed, the sooner we will see a steady stabilization in its real estate market. Recovery is just around the corner.

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