Foreclosure in Tampa>Question Details

Riz, Home Buyer in Tampa, FL

Are prices going to fall more in the Tampa area?

Asked by Riz, Tampa, FL Fri Sep 7, 2007

With so many sub-prime loans set to reset in 2008, will prices drop another 20%? Also, what is the current median income to median home price ratio? Since standard and historical facts say that the median home prices can't be more than 3-4 times the median income in a normal market, I'm trying to figure out when a good time to buy is.

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14
If your primary reason to buy a home is as an investment then you want to catch the trend. Trying to catch the bottom is a losers game, you can only catch the trend.

So you want to catch the trend on the way up. I'd say that is not now. You will only be able to see the trend after it has been in place for awhile. Buy then and you have a good chance to ride it up for awhile. There is always a chance that you will buy at the top of the trend, but the chance is not large.

On the other hand, if you are buying a home for other reasons, and you are going to live in it for a very long time, (7 years plus), then right now just might be a good time to buy. You will likely weather the downward trend and still be there for the up trend.

Bottom line, you never really know when it is time to buy. But peope need to live somewhere and you need to either own or rent from someone else who owns.
3 votes Thank Flag Link Fri Sep 7, 2007
I would be lieing if I said NO...buy now. The real answer is "I dont know" and basically noone knows. We watch market trends and try to predict what is happening based on current market trends. In December, the market trended up, very unusual for that time of year, but 1 point does a trend not make. If we get 2 or more in the same direction, then I would say, now is the time to jump in...just keep your eye on the prize.
2 votes Thank Flag Link Fri Feb 1, 2008
Great question and as you can see, experts, homeowners, speculators and Realtors have different ideas and perspectives on this subject. A great article came out today in the Tampa Tribune, I have attached that for review here. This shows a little information on both sides of the story. If you listen to the real estate news headlines, it is all doom and gloom, yet as this article points out--homes are selling in Tampa, yet sellers have to give more on price.
2 votes Thank Flag Link Sat Dec 29, 2007
Yes!!! 30% to 50% depreciation over the next two years

An honest realtor.
1 vote Thank Flag Link Sun Feb 10, 2008
There hasn't been one convincing argument to buy right now. I guess it's smarter to rent for a year or so and wait until the market does normalize. The risk of buying is too much right now considering all the financial news out there, it's downright scary. Greenspan even warned that the market looks like it did right before the crash in 1987.
Additionally, if I do wait another, the risk of the market going up is extremely minimal. Appreciation will only be 1 or 2% vs. the potential 10-20% drop.
Thanks- looks like a much smarter decision to NOT BUY RIGHT NOW.
1 vote Thank Flag Link Sat Sep 8, 2007
Great question.

I don't have the crystal ball but every now and again the market does a cleanse or correction. It is the ebb and flow of this business and our economy. Many times it is in 10 year cycles.

The housing market has been in an upswing since 1996. We are doing a bit of a correction. How much we do not know.

It's a great time to buy if you are looking long term. If you are looking at flipping of very very term buy smartly.
1 vote Thank Flag Link Fri Sep 7, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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That's the most irresponsible advice I have ever read. You say "go buy" like a robot, but then say the market is going to be a mess. You should be ashamed of yourself!
1 vote Thank Flag Link Fri Sep 7, 2007
Here we are one year on and it would seem that all these self serving realtors who told you it was a great time to buy where wrong again and if you were foolish enough to have followed there advice you have lost mega moola.

One year on, is now the right time to buy you ask. The answer is an emphatic NO!!! The Ace predicts real estate price declines heading into 2009 of an additional 20 - 35%. I was right before and I'm right again, follow the Smart Money.

An honest real estate expert.
0 votes Thank Flag Link Sat Jul 26, 2008
To the one who quotes the Forbes article...check your history and other credible sources. Forbes is essentially E! for the corporate world. Not much credibility and I hope you're not selling to your clients based on this one article vs. 100 more that say the opposite.
0 votes Thank Flag Link Sun Feb 10, 2008
A summer Forbes Magazine article by Matt Wolsey(6/8/07?/ entitled "Most Resilient U. S. real estate markets predicted Tampa to begin its comeback during the first quarter of 2008. Further, within a year property values would begin to appreciate??????? After the inventory surplus had been sold off.

If Forbes is right.......NOW is the time, so get busy. Start by checking out the article.

Good Luck,

The "Eckler Team"
Century 21 Almar & Assoc.
Venice, Fl 34285

941-408-5363
0 votes Thank Flag Link Fri Feb 1, 2008
As a Real Estate Pro I sold my McMansion in 2005 at the top of this bubble madness and walked away with a cool quarter of a $million which is now earning a guaranteed 6.05% per year. I now rent a 2/2 Ocean View Condo for just under $1,200.00 per month the balance of which is subsidized by a foolish speculator to the tune of $2,457.00 per month, his cost minus my rent.

Only a fool would buy a home in this market as it will depreciate between 20% to 50% over the next three years.

Now is a terrible time to buy!
0 votes Thank Flag Link Sun Jan 13, 2008
I forgot......... I buy properties myself, and seen "good" deals gone next day, think again FORECLOSURE-SHORT SALE- FIXER UP.
GIVE ME A CALL
0 votes Thank Flag Link Mon Oct 1, 2007
Well, the market might as well drop a little more but not certainly 20%.
If you compare "actual" income/value, think again.......... many people has been layed from their jobs!
Also my personal rule of thumb.... lower the asking price myself about 5%.
Then again, you need to clearify your objects: investments or.......
At this point you can decide, remember it's a buyer market, real estate don't spoil, and people loosing their jobs, gladly will negotiate the price before Foreclosure or better yet I'll do it for you.
It's definetely always a good time to buy with a "smart" agent, if you know your goals!
Check me out !
Web Reference: http://www.hothomespot.com/
0 votes Thank Flag Link Mon Oct 1, 2007
Now is a good time to buy, dont make the mistake that so many buyers are doing, sitting and waiting for an even better deal.... there are alot of good deals now, and interest rates are still good. you are correct in your thinking pattern in regards to the subprime mess. more than likely will hit another record high in foreclosures in 2008.
i am not in tampa but the market conditions and the subprime mess is a countywide issue.
good luck .... go buy something you can afford, and use representation.
0 votes Thank Flag Link Fri Sep 7, 2007
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