Hello Tampa Bay:

Here is an interesting market update.  Prices have been going up, while inventory continues to go down.  It’s a great time to list a home.

In February 2015, 3,917 homes were sold in the Tampa Bay area with a median price of $145,000. This compares with 2,896 homes sold during the same period last year which translates into a 35% increase in the number of homes closed and a 10% rise in the median price (from $132,000 to $145,000). At the end of the month there were 16,561 homes for sale in the area; 24% of the available homes sold in the last month – this translates into an inventory of 4 months. There has been a 6% decrease in the number of homes available for sale from February 2014 to February 2015 (from 17,695 to 16,561).

Best regards,

Elegant Casas

Hello Tampa Bay:

I wanted to share with you my predictions for 2015.

SLOWER GAINS IN PRICE
I predict home prices will rise 3% in 2015.  With improving inventory and the exit of institutional investors, we’ve entered into a “normal” phase of steady growth, rather than the rapid recovery phase of 2012-2014.

BUYING HYSTERIA TO FADE
The homebuying process will be less hectic in 2015.  I’ve already seen the home buying process become easier for regular people.  Sellers will face more competitive pressure, and buyers will face less…as inventory continues to rise, investors exit, and buyers face increased access to credit.  As such, a more balanced market will continue to develop.

MORTGAGE RATES WILL RISE
I predict interest rate on 30-year mortgage will rise to 4.5%.  We are currently near historic lows of 3.7%.

FORECLOSURES WILL DECLINE
Foreclosures will continue to decline as many people have gained equity in their home due to the price gains over the past few years.

GLOBAL BUYERS
Foreign buyers will continue to play a huge role in Tampa Bay housing market.  In 2014, Florida had the highest percentage of foreign buyers in the country, and Tampa Bay had the highest percentage among Florida metropolitan areas (even higher than Miami!).

Best regards,

Michael A. Melnyk

Hello Tampa Bay:

Here are some notes from an interesting article of The Wall Street Journal.

• Home-price appreciation is slowing (a welcome trend for potential homebuyers)
• Single-family housing prices for Tampa-St. Pete-Clearwater market rose 1.3%  from the same quarter a year earlier (note that the average for the 25 largest metro areas is 4.4%)
• “We see moderation in price gains continuing”
• Interest rates expected to continue to increase next year, which could further slow appreciation

Here is a link to the original article:
https://online.wsj.com/articles/home-price-growth-slowdown-a-mixed-trend-for-economy-1407861595

Best regards,

Elegant Casas

Hello Valued Client:

We just wanted to send you a quick note to say Thank You.

The bulk of our business comes from word-of-mouth referrals.  We do not advertise on Billboards or Street Benches, which experts show has a very low return-on-investment.  As you know, a client sent to us is in excellent hands.

By the way, property values have surged this year!
Click on link below for more details:
Pinellas:
https://www.tampabay.com/news/localgovernment/pinellas-property-values-rise-for-second-straight-year/2182000
Hillsborough:
https://www.tampabay.com/news/business/economicdevelopment/hillsborough-property-values-are-up-for-third-year/2182375

Best regards,

Elegant Casas

Hello Tampa Bay:

I wanted to share with you my predictions for 2014.

PRICES
I predict market values in Tampa Bay will increase by 6% by January 2015.  We are starting to see a stabilization.  The housing market staged a spectacular recovery over the past year.  I see the market continuing it’s upswing, but at a much cooler pace.  Due to this stabilization, as well as lessening inventory and very attractive selling prices, today is a great opportunity to list a home on the market.

INVESTMENT OPPORTUNITIES
I predict that we will continue to see many bank-owned properties and short sales hit the market.  Although the volume is less than previously, there are still many great investment opportunities that exist.  The good news is that many of the professional investors have left the market, which gives more opportunity to find a hidden gem to flip or rent for an attractive profit.

MORTGAGE RATES
I predict that mortgage rates will increase to 5.00% by January 2015.  30-year fixed mortgages were at record-breaking lows, so it appears that they can only go up at this point.  Especially as the Federal Reserve continues to taper quantitative easing.  As the U.S. economy continues to improve, economists foresee mortgage rates worsening.

ELEGANT CASAS
Elegant Casas is defined by both integrity and a very high level of service.  We have the technological tools, financial backing, and professionalism to ensure that you have a pleasurable real estate experience in 2014.

Best regards,

Michael A. Melnyk