Tampa Bay & Sarasota FL Luxury Real Estate Blog

While we’ve seen a few slow years in the non-waterfront luxury home segment, 2010 saw a welcome increase in the number of million dollar homes sold around the Tampa Bay area.  Within a 30 mile radius of Tampa, there were 51 properties sold with a price tag of $1 million or more. The average non-waterfront luxury property was a 5 bedroom, 5 bath, with 6039 square feet of living space and sold for $1,488,836, or $262 a square foot.

But, one area stood out as the clear “winner”.  Of the 51 luxury sales, 18 of the sales were in the zip code 33556 which covers Odessa and Keystone.  The communities of Dolce Vita, Northbridge At Lake Pretty, and Keystone Shores represented half of the recorded sales.  There was a 3 way tie for second with South Tampa zip code 33609 posting 5 sales, New Tampa zip code 33647 posting 5 sales, and the community of Avila in zip code 33613 posting 5 sales.

If we look at the numbers of the top 4 areas we can easily see why Odessa had so many sales.  Odessa was the only area in the top 4 with an average sales price below the average for the Greater Tampa area.  In fact, the average sales price for Odessa was almost 20% lower.  Add ease of access to downtown Tampa, great schools, convenience to shopping and dining, and it’s easy to see why Odessa was the clear winner in luxury home sales for 2010.

Steve Eckhardt, Broker

(813) 765-1182

Foreclosures in April were a whopping 59 percent lower in Florida than a year ago according to statistics compiled by RealtyTrac.  Nationwide, foreclosure proceedings in April 2011 dropped 34 percent from April 2010.

Florida's existing home sales surged in March, recording the single biggest month since late 2005. Sales of condos and homes jumped 36 percent from February to March, surpassing the national rise of 3.7 percent, according to figures from the Florida Realtors and the National Association of Realtors.  Seventeen Florida regions reported higher sales last month, and it's the fourth consecutive month that statewide sales have exceeded the same month in the prior year.  The study also noted that a full 35% of buyers were CASH BUYERS. 

The median sales price for homes in Clearwater Beach FL for Jul 10 to Sep 10 was $710,500. Sales prices have appreciated 1.5% over the last 5 years in Clearwater Beach. The average listing price for Clearwater Beach homes for sale was $583,286 for the week ending Oct 20, which represents a decline of 0.8%, or $4,702, compared to the prior week and a decline of 1.6%, or $9,584, compared to the week ending Sep 29. Average price per square foot for Clearwater Beach FL was $170.

WASHINGTON - July 8, 2010 - International homebuyers are increasingly attracted to property in the U.S., according to the National Association of Realtors®' 2010 Profile of International Home Buying Activity. Several factors, including the strength of the dollar, the value and desirability of U.S. real estate, and the emerging economic recovery, continue to drive international interest in owning a home in this country.

"While all real estate in the U.S. is local, the same is not true for property owners," said NAR President Vicki Cox Golder. "The U.S. continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning a home in this country and can rely on Realtors to help guide them through the complex process of buying property in the U.S. With expertise, knowledge and experience, Realtors have a global perspective."

The survey covers the period between April 1, 2009, and March 31, 2010. During that time foreign buyers, including those with residency outside the U.S. as well as recent immigrants and temporary visa holders, are estimated to have purchased $66 billion of U.S. residential property, or 7 percent of the residential market.

Slightly more than a quarter of Realtors, 28 percent, reported working with at least one international client in the past year. This is a significant increase from the 2009 report, when 23 percent of Realtors worked with foreign clients. Eighteen percent of all Realtors were estimated to have completed at least one sale, compared to 12 percent last year.

"Several factors have contributed to an increase in international buyer interest in the U.S.," said Golder. "A large majority of Realtors report the changes in value to the U.S. dollar have had a strong impact on the international real estate business. In addition, perceptions abroad about trends in the U.S. real estate market have led many international clients to believe purchasing a home in the U.S. is more affordable than in their country and holds more value."

International buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23 percent of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing. In 2010, Mexico replaced the U.K. as the second largest buying group with 10 percent of buyers. Buyers from the U.K. decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of recent buyers came from China/Hong Kong.

Two factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans.

International buyers were reported in 39 states in 2010, but a slight majority of the total buyers are concentrated in Florida, California, Arizona and Texas. These four states account for 53 percent of purchases and have remained the top destinations for the past three years, with Florida and California remaining the top two destinations.

The median price paid by international buyers for a home in the U.S. was $219,400, a decrease from 2009's median price of $247,100. However, the median price paid by foreign buyers was significantly higher than the overall median market price, which was $172,500 in 2009. On average, foreign buyers tend to purchase closer to the upper end of the market; 16 percent of the total international purchases were for homes priced at more than $500,000. According to Realtors, this was because international buyers are typically looking for a second home.

A majority of international buyers, 66 percent, purchased single-family detached homes. However, more international buyers purchased a condo than did their U.S. counterparts, at 23 percent and 7 percent, respectively. Only 44 percent of international buyers used a mortgage to pay for their home, compared to 92 percent of domestic buyers. Fifty-five percent of foreign buyers paid all cash. Realtors reported that a majority of international buyers use all cash because of the difficulty in establishing international credit in the U.S. Over one-third, 34 percent, of potential foreign buyers was unable to complete transactions because of financing problems in the U.S.

© 2010 Florida Realtors

For Information on purchasing investmentr real estate in the United States, please contact Steve Eckhardt, Broker, Cornerstone Properties & Investments, LLC at (813) 765-1182.

According to the S&P/Case-Shiller U.S. National Home Price survey , U.S. Home Prices rose for sixth straight month.

We see our share of expensive homes in Florida, but I wanted to give a glimpse of the most expensive homes nationwide.

Click Here to see the most expensive listings

Steve Eckhardt, Broker, Luxury Real Estate Professional

Contact me at (813) 765-1182

www.TheFloridaAuthority.com

www.SearchForTampaHomes.com

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Tampa Bay home sales rose 17 percent between August 2008 and August 2009, but slowed from their relatively brisk pace in July. Realtors reported 2,370 sales in August, up from 2,029 a year earlier. The median sales price declined 17 percent the past year from $173,900 to $144,600.

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Sales of million dollar homes took a dive in 2008 for both the Greater Tampa Bay area and the Greater Sarasota/Bradenton areas.  The scarcity of jumbo loans, falling investment portfolios, and economic pessimism all contributed to the slow sales in the luxury home market.

The following statistics are taken from the Mid Florida Regional MLS and cover single family homes over $950,000.  The Greater Tampa Bay area statistics cover Hillsborough, Pinellas, and Pasco counties.  The Greater Sarasota/Bradenton statistics cover Sarasota and Manatee counties.

Greater Tampa Bay Area

492 homes over $950,000 sold in 2008 vs. 601 homes in 2007.  The drop of 109 homes represents an 18.13% decrease in sales of million dollar homes.  The average list price in 2008 was $1,720,163 and the average sales price was $1,339,315.  A discount of 22% off the average asking price.  The average size of the luxury homes sold in Greater Tampa Bay was 4089 square feet with a average price of $327.54 a square foot.  There are currently 1446 homes over $950,000 available for sale in the Greater Tampa Bay area.  30% of the luxury buyers in 2008 paid cash.

Greater Sarasota Bradenton

537 homes over $950,000 sold in 2008 vs. 733 homes in 2007.  The drop of 196 homes represents a 26.7% decrease in sales of million dollar homes.  The average list price in 2008 was $1,920,218 and the average sales price was $1,633,010.  A discount of 14.9% off the average asking price.  The average size of the luxury homes sold in Greater Sarasota/Bradenton was 3545 square feet with a average price of $460.65 a square foot.  There are currently 1561 homes over $950,000 available for sale in the Greater Sarasota/Bradenton area.  55% of the luxury buyers in 2008 paid cash.

As you can see from the above statistics, the Greater Sarasota/Bradenton area had a much larger percentage of cash buyers.  And while they had a larger percentage drop in the number of homes sold, they were able to command 40% more per square foot and keep the sales price to listing price discount at 14.9% vs. 22% in the Greater Tampa Bay area.

Nationally, the number of luxury homes on the market increased in the month of January after 5 straight months of falling inventory. The statistics are compiled by the Institute For Luxury Home Marketing and Altos Research.  (The chart covers homes on the market for at least $500,000 in the top 10 zip codes for 31 major metro markets around the county.)  I expect this trend to last through the Easter holiday and then start a gradual decrease through July.

If you are considering the purchase of a luxury home on the Gulf Coast of Florida, please call or e-mail.  Steve Eckhardt, Broker, (813) 765-1182 or steve@TheFloridaAuthority.com

The most recent quarterly survey of Florida real estate trends completed at the end of September finds that the investment outlook for various types of real property in Florida remained steady.  The national economic crisis has failed to rattle Florida real estate experts despite the availability of financing.

Experts that responded to the survey overwhelmingly stated that Florida is the place to be and the place to invest. "Although Florida's housing crisis was worse than some other states, over the long term Florida will benefit from the migration of new residents, particularly as baby boomers age," stated Wayne Archer, executive director of UF's Bergstrom Center For Real Estate Studies.  The Sunshine State's mild climate and outdoor amenities make it an attractive retirement destination.

The numbers I have compiled from the MLS seem to justify the feeling in the UF survey.  The Greater Tampa Association Of Realtors show that total residential sales for October increased from 1,063 in 2007 to 1,091 in 2008.  Even in Southwest Florida (Fort Myers, Cape Coral, & Naples), the reported epicenter of the housing meltdown, the most recent numbers for October 24th through November 24, show that 493 properties were sold.  That figure actually topped 2007, with 404 sales during the same period, and 2006, with 426 closed sales during the same period. The improvements are all the more impressive in light of September's financial meltdown.

Last month, MDA DataQuick reported that Southern California homes sales rose 66.7% from the same period as last year.  The reason, many experts pointed out, was because the median home price was at it's lowest level since April 2003.  Don't be surprised if we see the same thing happen on the West Coast of Florida.  The median price in the Tampa/St. Petersburg/Clearwater area fell 26 percent to $152,300. The area hasn't seen home prices that low since April 2004, when the median was $148,800.

Back in 1989, economists N. Gregory Mankiw and David Weil predicted that demographic trends would lead to a "substantial" fall in real, or inflation-adjusted, home prices over the next two decades "if the historical relation between housing demand and housing prices continues." They reasoned that baby boomers were coming to the end of their prime house-buying years and that the smaller baby-bust generation would bring lower demand for housing.  Despite the recent drop, the average U.S. home price is up about 35% in real terms since the end of 1989, according to the Ofheo index.

The median price has fallen to early 2004 levels.  Sales are up from last year.  Last week's announcement by the Fed to drop mortgage rates to 4.5%, prompted a half-percentage point drop in current mortgage rates and sent homebuyers' mortgage applications up 37.4%, according to the Mortgage Bankers Association.  The current 30 year fixed, mortgage rate is now about 5.5%.  Rates have not fallen below 5.37% for 45 years. 

The interest rate was at 6.5% just a few months ago.  The 1% reduction in the interest rate gives the average buyer about 10% more buying power.  If rates go back up to 6.5% and prices fall another 10%, the average buyer would be making the same monthly payment as a person who bought at the higher price with the lower interest rate. 

There are always going to be people yelling that the sky is falling.  I prefer to look at the positive things that are going on around us. Low prices, low rates, and a good amount of inventory makes this a great time to buy!