Hillsborough County home sales improve in October

We'll start by conceding that home sales in October 2008 were beaten down by last year's credit lock up. Nevertheless, it's none too shabby when sales rise 35 percent year over year.

The Greater Tampa Association of Realtors recorded 1,722 sales in October 2009 versus 1,279 a year earlier. The average sales price - Tampa Realtors used average instead of median - dropped 16 percent over those 12 months. A typical home sold for $156,775 last month compared to $186,424 a year earlier.

I don't put much faith in month-to-month zig zags, but Hillsborough County home prices fell almost 5 percent from September to October. That suggests plenty of cut-rate foreclosure homes are finding buyers, which weighs down average home prices.

Here's a detailed chart: Download Gtaroct09

Comments

[Fuzzy Bear]

"That suggests plenty of cut-rate foreclosure homes are finding buyers, which weighs down average home prices."

I would have to agree with the above mention. However, it looks like the month of October increases were mostly those who were seeking to take advantage of purchasing foreclosed properties and those that qualified for the first time homebuyer credit.

Hillsbourough county has a long long way to go before it depletes it's supply of foreclosed properties and the "Hidden Inventory" or shadow market of REO's, etc. In my opinion, it will take a few years for this inventory to be reduced as Hillsborough County is the leader in foreclosed properties in the Tampa Bay area.

[Frank Lee]

Distressed properties may not be the only reason for the pricing. Correct me if I'm wrong, but I believe GTATR's sales stats include condos, townhouses, duplexes/tris/quads, villas, manufactured homes and (yikes!) vacant lots in their calculations. Shifts in sales mix due to simple supply/demand dynamics could also play a large role in current pricing. Two ways to gain a better grasp on GTAR's report would be:
1) Obtain the statistical trend in distressed sales mix. It was previously reported at around 30% - down from almost 50% several months ago. (HomeEncounter report?)
2) Delineate GTAR's *Residential Sales* by type. If you see rises in historically less expensive varieties, this is a pure Econ-101 example.

Sure, "inexpensive is in", but if there is a shift in the mix, that might *also* explain some of the pricing instead of solely blaming distressed properties and lack of luxury sales.

[Samuel]

Awesome to hear that home sales are starting to get back up in some areas!