Because of the Tampa Bay, Florida area's overall
strong, growing economy and comparably modest
housing prices, Forbes magazine August 2007 issue
calls Tampa-St.Petersburg-Clearwater a prime
bounce-back market. That means opportunity for
those looking to retire to Florida or having
flexibility in where they live.
The predictions
are that the Tampa Bay area will experience what
Forbes calls a V-shaped recovery. This is defined
as a market experiencing a free fall, but
rebounding strongly once it hits bottom.
Other regions and markets will chart U-shaped
or L-shaped courses. U-shaped recoveries are those
in which prices fall slowly and recover gradually.
Examples are Boston, MA and Sacramento, CA.
The L-shaped market recovery scenario happens
when prices plummet and remain mostly mired in a
trough. This results from underlying economic
problems in the city. An example is Detroit, MI.
"While the Tampa market has yet to bottom out
as of August 2007, the silver lining for buyers is
that it is a highly resilient market," the article
says.
"Most of the fallout in Tampa can be attributed
to its high investor share, which is correctable
given the good economic and job-growth
projections."
"With mortgage rates still very favorable and
with a great choice of both new and resale
inventory homes, now is an excellent time for
buyers to make their move," said Scott Reid, a
central Florida area Realtor and one of the
nations "Top 30 Realtors Under 30 Years Old".
To get on Forbes' Top 10 list, a region must
have an oversupply of real estate with plenty of
sellers willing to strike a bargain to sell their
home. That's not all, though.
Forbes also sought areas where prices would not
drop drastically. This appraoch to the Top Ten
market analysis benefits new buyers who will then
have some certainty that they are buying at or
near the market cycle's bottom and getting the
best price they can hope for.
The risk in postponing a buying decision is the
projected soon-to-be rising home prices and a
constant, ongoing reduction of home inventory from
which to choose.
Based on Forbes research figures, Tampa Bay
home prices should bottom out not later than the
first quarter of 2008. This will happen once the
region absorbs excess inventory from speculators
who purchased fixer-upper and flipper homes during
the past two years and are now disposing of their
properties.
Forbes' top 10 Home Markets
1. Tampa
2. Minneapolis
3. Miami
4. Kansas City
5. Chicago
6. Phoenix
7. San Diego
8. Milwaukee
9. New York City
10. Atlanta
