I don’t find this trend shocking at all.
Where’s Detroit? Surely that’s one of the top buyers markets (although why anyone would want to buy there is beyond me…).
Surprised about Tampa and Jacksonville.
Old people and Humidity trump ice and snow without mountains anyday in my book.
As someone that just listed a property for sale near Denver, this makes me very happy.
Where’s Detroit? Surely that’s one of the top buyers markets (although why anyone would want to buy there is beyond me…).
A buyer’s market is a market in which an values are depressed but recovering or poised for a recovery. Not sure Detroit fits that description.
Interesting that Chicago is there, we are in the process of refinancing the place we purchased 2 years ago and the value has exploded in that time. My neighborhood is not at all a buyer’s market, but on the whole there still some good opportunities. Still real estate is really local, subject to major macro-economic events.
The info on Tampa is pretty funny. There is hardly any inventory anywhere and the rental market has exploded to the point where Post Properties just built the most expensive community they have ever endeavored right down the street. If you have 300-700k burning a hole in your pocket good luck spending it here. Bidding wars are in full force where people are paying sight unseen again. My neighbors wanted to get into a bigger home this year, but if they sold they have nowhere to go b/c there is nothing to buy. Being a buyer here means you are paying at least $25 per square foot more than was paid at the peak of the boom in 2004. Now if you go to a bedroom community like Brandon that is a steal, but Tampa proper where I live is has surpassed pre-bust price per square foot. About 25 miles north of Tampa in Lutz you can find some decent buys in the big bedroom communities, bu the HOA’s and reserves on these communities are in arrears and bankrupt in many places. Zillow has Tampa in the wrong category it should be in the sellers market. I could sell my place in 48 hours if I wanted to move and get 235 sq. foot. w/o blinking an eye… I paid $167 sq. foot for it 11 years ago during the madness. Even the most undesirable areas around me can get a $25 price per sq. ft. bump right now, talking a crap hole that needs a new roof and plumbing work.
Do you have a link to this article so I can read up on the metrics they are using in detail please?
Being a buyer here means you are paying at least $25 per square foot more than was paid at the peak of the boom in 2004.
The “peak” was in 2006, and the bubble was particularly large in Tampa. Almost every metropolitan area has pockets which have recovered fully, but the generalized “buyer’s market” is probably due to the continued backlog of foreclosed homes. I am a little surprised that overbuilt areas like Las Vegas were included in the “Seller’s market” list.
Being a buyer here means you are paying at least $25 per square foot more than was paid at the peak of the boom in 2004.
The “peak” was in 2006, and the bubble was particularly large in Tampa. Almost every metropolitan area has pockets which have recovered fully, but the generalized “buyer’s market” is probably due to the continued backlog of foreclosed homes. I am a little surprised that overbuilt areas like Las Vegas were included in the “Seller’s market” list.
The ‘peak’ for the country might have been 2006, but like most things with trends the media was WAY late to the party. In Tampa the trend started in 2004 and by 2005 it’s was in full Drain-O mode. Again, it would be a buyers market if the banks were selling any of the foreclosed properties. They are not selling them to people who want to own, but rather large corporate entities who buy up bulks of them and then rent out. Like most things with the media they haven’t a clue what is going on. Heck all I have to do is look at my K-1 from Blackstone to know they are killing it! They came into Tampa and Orlando and were spending upwards of $100 million a week in 2011 and 2012.
Detroit has its own category.
Detroit has its own category.
Was your ‘last tri’ really in '83? Damn dude that is like ending at the beginning!
When I logged to ST in 2005, that was accurate. Currently my last tri was in 2010.
When I logged to ST in 2005, that was accurate. Currently my last tri was in 2010.
What race was that out of curiosity in '83? Is it still around? I was pleasantly surprised to see my first race in '86 is still alive and well albeit under a different name.
I think it was the Bud Light series in Bakersfield.
In Tampa the trend started in 2004 and by 2005 it’s was in full Drain-O mode.
I would define “peak” as the high point for prices (which was in 2006):
Again, it would be a buyers market if the banks were selling any of the foreclosed properties. They are not selling them to people who want to own, but rather large corporate entities who buy up bulks of them and then rent out.
And that would pretty much define a “buyer’s market”. (it doesn’t matter if the buyer is an individual or corporation). The only folks interested in purchasing the considerable inventory are buyers who aggressively search for under-valued properties for rental purposes. There are certainly pockets where it is a seller’s market, but the poor outlook for appreciation in many areas keeps prices low in those areas.
I would bet less than 1% of the people who read that Zillow article will think Tampa is a buyers market b/c corporations are snapping up homes. Zillow does their best to shine a turd. I don’t consider a locale filled with qualified buyers pissed off sitting in a rental b/c they can’t find a place to spend their money on a mortgage a ‘buyers market’. I’d call it anything other than a ‘buyers market’, more like a ‘buyers holding pattern throwing money into a furnace renting’. All that has been done here is create a bunch of opportunities for people to light a rent check on fire every month going towards nothing due to a complete lack of inventory.
And you are right in the average price not declining until 2006, but I don’t look at that for systemic health of a local market. I digest building permits and starts and mostly what the experienced builders are doing. I didn’t historically until I became friends with a builder of low cost townhomes in south Tampa and around Mac Dill AFB and for that I thank my lucky stars. I’m assuming you are in Florida? You didn’t see any of the slow down in building b/f 2006? You can’t possibly be in Tampa proper and not have seen this trend long b/f the headlines of ‘hey there might be a housing bubble forming’. Homes half built with grass growing up over materials in the front yard…this was not hard to see if you live here. I think a lot of people look at a group like Pulte and think if they are building that the world is good and everything is good to go. They had the worst delusions of anyone!
The info on Tampa is pretty funny. There is hardly any inventory anywhere and the rental market has exploded to the point where Post Properties just built the most expensive community they have ever endeavored right down the street. If you have 300-700k burning a hole in your pocket good luck spending it here. Bidding wars are in full force where people are paying sight unseen again. My neighbors wanted to get into a bigger home this year, but if they sold they have nowhere to go b/c there is nothing to buy. Being a buyer here means you are paying at least $25 per square foot more than was paid at the peak of the boom in 2004. Now if you go to a bedroom community like Brandon that is a steal, but Tampa proper where I live is has surpassed pre-bust price per square foot. About 25 miles north of Tampa in Lutz you can find some decent buys in the big bedroom communities, bu the HOA’s and reserves on these communities are in arrears and bankrupt in many places. Zillow has Tampa in the wrong category it should be in the sellers market. I could sell my place in 48 hours if I wanted to move and get 235 sq. foot. w/o blinking an eye… I paid $167 sq. foot for it 11 years ago during the madness. Even the most undesirable areas around me can get a $25 price per sq. ft. bump right now, talking a crap hole that needs a new roof and plumbing work.
Do you have a link to this article so I can read up on the metrics they are using in detail please?
Maybe Polk County and Brandon found its way into those numbers. I wish I could sell my house for the amount owed on it. Almost there though. Probably can sell it next year.
The taxes cost more than the house.
The info on Tampa is pretty funny. There is hardly any inventory anywhere and the rental market has exploded to the point where Post Properties just built the most expensive community they have ever endeavored right down the street. If you have 300-700k burning a hole in your pocket good luck spending it here. Bidding wars are in full force where people are paying sight unseen again. My neighbors wanted to get into a bigger home this year, but if they sold they have nowhere to go b/c there is nothing to buy. Being a buyer here means you are paying at least $25 per square foot more than was paid at the peak of the boom in 2004. Now if you go to a bedroom community like Brandon that is a steal, but Tampa proper where I live is has surpassed pre-bust price per square foot. About 25 miles north of Tampa in Lutz you can find some decent buys in the big bedroom communities, bu the HOA’s and reserves on these communities are in arrears and bankrupt in many places. Zillow has Tampa in the wrong category it should be in the sellers market. I could sell my place in 48 hours if I wanted to move and get 235 sq. foot. w/o blinking an eye… I paid $167 sq. foot for it 11 years ago during the madness. Even the most undesirable areas around me can get a $25 price per sq. ft. bump right now, talking a crap hole that needs a new roof and plumbing work.
Do you have a link to this article so I can read up on the metrics they are using in detail please?
Maybe Polk County and Brandon found its way into those numbers. I wish I could sell my house for the amount owed on it. Almost there though. Probably can sell it next year.
Can’t figure it out either Forge. I suppose b/c Brandon and Lutz are in the same county they are mixing those bedroom community numbers in even though they are 20-25 minutes from Tampa. The rental demand is so out of control here it’s cuckoo. I’d love to take advantage of the insane price per sq. ft., sell and downsize into a single level ranch style home, but all I’d end up doing is paying 3k a month in rent waiting in line behind 40 other couples looking for the same kind of buy paying sight unseen to secure it.
Forge this is an edit/update. I sent an email to a broker friend of mine this morning and here is what Zillow did. That report came out this past spring and they included cities like Hudson, New Port Richey and even Holiday! As in 50 miles north and west of town…that Hudson. So, there is how they made Tampa into a buyers market. Which begs the question: if they are going to run 50 miles away to find bargain bin home pricing/availability why bypass cities like St. Pete and Clearwater who are less than half as far away? Oh that’s right, b/c they have no product either. Rent city.
My house is almost 50 miles from Downtown.
but I don’t look at that for systemic health of a local market.
In 2007 there was some discussion about rental units in CA and how people could rent cheaper then they could buy. One of the major factors was that people were buying rental units and renting at near break even or even loss because they were relying on getting a return on increase in value** **of the property.
At that time, and still to this date, I thought that was a rather silly way to attempt to make money on real estate and even suggested that such activity might cause a bubble. In essence you’re pushing the property value beyond it’s functional value by doing this. Shortly after this housing prices really started to take a dump.
Up thru the late 90’s housing prices and equivalent rent prices were pretty close. After that housing prices split off radically higher. They again became pretty close after the crash in 2011 and are now separating again.
~Matt