Mjw, Other/Just Looking in New Port Richey, FL

Why do you think New Port Richie was hit so hard and do you think housing prices, specifically condo prices, will go down further?

Asked by Mjw, New Port Richey, FL Wed Apr 13, 2011

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Pasco County experienced a meteoric boom and then came crashing down. Now in many areas, New Port Richey, Trinity, Odessa, Land O Lakes and others we are seeing stabilization and increases. Many right priced houses are being scoped up in days. Appraisals are going up and inventories are shrinking. While I wish this was more global, it varies from community to community.
Condo financing continues to be an issue. Even with the FHA change that allows a higher percentage of investor owned units, many banks don't want to finance condos.
With interest rates likely to rise, prices already rising, yesterday was a better day to buy than today and it's a good bet that today is better than tomorrow.

Nick Caputo
Future Home Realty
1 vote Thank Flag Link Sun Mar 10, 2013
New Port Richey is like thousands of other cities across the country that were hit with an overwhelming number of foreclosures. There is no special reason attributable to New Port Richey. Just like any other area, many people could not afford their mortgages, causing a large number of foreclosure, thus, creating an abundance of foreclosed homes on the market which in turn created a rapid downward slide in market values. It could have been much worse if the banks did not somewhat temper the release of foreclosures onto the market. Now we are see flat to upward pricing in many New Port Richey areas, and hopefully that trend will last.


Fred Strickroot
1 vote Thank Flag Link Wed Mar 6, 2013
New Port Richey and Pasco county back in 2005- 2006 was the #1 county in the country in growth, it grew by leaps and bounds, when that happens overbuilding occurs, so of course its going to be the hardest hit also the Port Charlote area was also hit hard, now many people who bought during the high market are losing their homes, right now there are more homes then there are people buying, meaning we have a supply but not the demand, even though there are people who want to buy, Banks are not lending as easily, making it a DOUBLE WHAMY in the local market, one good thing comes out of this, is that this is a great time to buy, prices have bottomed out, interest rates will rise soon so i would not wait much longer.
0 votes Thank Flag Link Wed Apr 13, 2011
The majority of condos nowadays require an ALL CASH purchase so there are significantly fewer people who are able to buy so lower demand results in lower prices.

So bottom line it is supply and demand that determines the market price.

Factors that affect demand are the ability to obtain financing. Many owners who may want to buy a 2nd lower priced home may be unable to because lending guidelines have gotten very strict so even if they plan to rent out their existing home they cannot include the rental income--unless they have at least 30% equity. Many people have zero or negative equity.

So the only way I see out of this Real Estate pit is either hyper inflation or if our "leaders" do something very creative like immediately open up our borders to higher net worth immigrants with the requirement they must buy a property.

So unless something is done (or inflation goes sky high) my guess is we will continue to see real estate prices decline for many years to come.
0 votes Thank Flag Link Wed Apr 13, 2011
New Port Richey and all of Pasco County was hit hard because we were farther behind in inflation than most of FL. Homes that sold in the late 70s for $55K sold for $65K in 2003 and then sold for $140K in 2005. These figures are from one particular subdivision where I sold several homes. The market was hardest driven here..had the biggest increases, thus is having the biggest market correction. Market correction is what we are experiencing. I don't think Pasco/New Port Richey will drop much further as we are a bit undervalued at this point.
0 votes Thank Flag Link Wed Apr 13, 2011
Professional code of ethics would prevent a Realtor to respond we can't predict the future

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Apr 13, 2011
New Port Richie (like other areas in FL where I invest) had a lot of overvalued properties, and the market correction has returned the pricing to saner levels. Additionally, the number of (pre-)foreclosures in the inventory has continued to put more downward pressure on pricing in some areas, and some niche markets (eg luxury properties).

Many banks got burned multiple ways lending on condos--especially in FL, CA, AZ, and NV--so they're leery about lending on them. In cases where they're willing to lend on them, I've seen several ask the borrowers to put down at least 20% to 30%. Your mileage might vary.
0 votes Thank Flag Link Wed Apr 13, 2011

Good morning. New Port Richey was ‘hit’ no harder that any other Community/town within the area. Also keep in mind there are several different Community types located in NPR from in-City Single Family, the Waterfront/Boating Communities of Gulf Harbors to the West and the ‘Trinity’ areas to the East.
Regarding Condo prices, this also depends on the area of NPR that you are referring to- again, in-land or Waterfront.

Yes, prices have gone down, and may continue into the second and third quarter, but if you are considering buying, depending on your desired price-point, a 10-20% drop will well make itself up when the market rebounds for its always better to buy on the way down, that on the way up.

Please feel free to contact me directly if I can assist you further.

Steven Zimmerman Realtor ABR GRI / GULF HARBORS Resident & Specialist / Belloise Tropical Realty
0 votes Thank Flag Link Wed Apr 13, 2011
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