Vacation Home Sales Rise In 2011 & Continue In 2012!

Each real estate market area is unique is how it performs and how it adjusts to this slow turn in the economy... they do NOT all operate the same. The PURTEE Team has been talking in our BLOG about the beaches of Tampa Bay and how the recovery has swiftly turned the pendulum into a HOT sales market!

According to the National Association of Realtors, "sales of investment and vacation homes jumped in 2011, with the combined market share rising to the highest level since 2005. NAR’s 2012 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in 2011, shows investment-home sales surged 64.5 percent to 1.23 million last year from 749,000 in 2010. Vacation-home sales rose 7.0 percent to 502,000 in 2011 from 469,000 in 2010."

Vacation-home sales accounted for 11 percent of all transactions last year, up from 10 percent in 2010, while the portion of investment sales jumped to 27 percent in 2011 from 17 percent in 2010. NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. “During the past year investors have been swooping into the market to take advantage of bargain home prices,” he said. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”

Here on the beaches, we have see inventory dwindle and distressed properties easily absorbed... often before they even hit the market! Nationwide, all-cash purchases have become fairly common in the investment- and vacation-home market during recent years: 49 percent of investment buyers paid cash in 2011, as did 42 percent of vacation-home buyers. Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. Here in Tampa Bay, the all-cash percentage currently exceeds 63%!

Some interesting statistics from NAR’s 2012 Investment and Vacation Home Buyers Survey, conducted in March 2012:

• Eight out of 10 second-home buyers said it was a good time to buy. Nearly half of investment buyers said they were likely to purchase another property within two years, as did one-third of vacation-home buyers.


• The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years.


• Eighty-two percent of vacation-home buyers said the primary reason for buying was to use the property themselves for vacations, or as a family retreat. Thirty percent plan to use the property as a primary residence in the future, and only 22 percent plan to rent to others.

In our local area, as inventory for sales has dwindled so has inventory for rentals. Even snowbirds traveling to the Tampa Bay are are finding their property to secure for next year harder and harder to find. This is a primary reason some of these renters are turning into buyers in order to secure their own place that they can count on year after year.

At this very moment, The PURTEE Team has 6 bank owned distressed properties in various stages with the bank prior to their being listed for public sale! Want to be on the inside track? Email us today at info@floridagulfproperty.com

Bank Owned REO's In High Demand!

As foreclosures move through the process and the banks finally take possession, the bank listing is referred to as REO or "Real Estate Owned". The bank will try to sell the property on the open market after removing liens. However, these lenders are not in the business of owning homes and, in some cases, the house can be bought at a discount to its market value... making it very attractive to real estate investors.

The REO activity is really heating up along the beaches of Tampa Bay, Florida! There are only 13 active currently in all of the beach communities from Clearwater Beach in the north to St. Pete Beach in the south. The average price is $183,546.

25 are currently under contract pending closing with an average list price of $271,453 and average days on the market of 53 (ranging from 3 to 81). To date in 2012, 28 have sold at an average price of $246,211 and an average of 98.53% of asking price! The average days on the market for the sold properties is 57 days from list to close.

So... how is a buyer to get on track with finding these properties BEFORE the competition gets to it? Knowing the path they are coming from and having a savvy realtor on the lookout for you is the best route. Currently, The PURTEE Team has 5 such REO properties about to hit the market. They are in various stages of the process with the bank... some without prices yet. If you are on the inside track, you may have an opportunity to pick up one of these properties before the public ever finds out about it! Do NOT be left out of this important part of the current real estate market where some of the most outstanding opportunities exist today. Email us at info@floridagulfproperty.com to find out if one of these upcoming REO's might be right for you!

Housing Affordability At Record High

The National Association of Realtors (NAR) announced that "housing affordability conditions have reached the highest level since record keeping began in 1970."

The Housing Affordability Index rose to a record high 206.1 in January. This index is influenced primarily by the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. If an index of 100 is considered the "breakeven where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments."

NAR President, Moe Veissi, says this latest data underscores buyer opportunities in today’s market.“This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home!”

So, what we need to look at regarding buyers being able to get these homes is financing. The rates are at historic lows but the regulations are so tight that many potential homeowners are simply not able to get the financing they need to make the purchase. Here in Florida a purchase of a condo anywhere in the state requires a 25% deposit down. Underwriters are scrutinizing all aspects of the purchase.

Veissi says. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices, with modest gains in areas with stronger job growth.” Currently here in Tampa Bay, cash sales are representing over 60% of transactions. Until financing returns to being a viable option, many of these opportunities will go to the cash buyers. To explore your options, The PURTEE Team is here to help. Specializing in Tampa Bay beach real estate, we understand the market, its trends and where the opportunities are. Whether considering a purchase or listing your property, contact us today!

Consumer Confidence Rising

On February 28, the Conference Board’s Consumer Confidence Index, which had decreased in January, announced an increase of 9.3 points in February. The Index now stands at 70.8 (1985=100), up from 61.5 in January. The Present Situation Index increased to 45.0 from 38.8. The Expectations Index rose to 88.0 from 76.7 in January.

According to Gallup's Economic Confidence Rating, confidence has been improving steadily over the past five months and is continuing that monthly trend during February. The stable nature of confidence in recent weeks suggests that surging gas prices have yet to dramatically affect Americans' perceptions of the national economy.

The proportion of consumers expecting business conditions to improve over the next six months increased to 18.7 percent from 16.7 percent, while those anticipating business conditions will worsen decreased to 11.8 percent from 14.6 percent. The PURTEE Team, with Realty Executives, keeps you informed about the emerging real estate market along the beaches of Tampa Bay and how to best navigate the buying or selling process. Contact Us Today: info@floridagulfproperty.com

Inventory At Record Lows - Sign Up For Monthly Updates To Stay Informed!

The PURTEE Team keeps their clients informed about the Tampa Bay beach real estate market with informative monthly updates via their email list. These updates include the current statistics on Absorption (inventory turnover), Condo and Single Family Home Active Listings Inventory & Sales.

In order to navigate this recovering market, buyers and sellers need to be informed. Real estate is not the same from county to county across the country... it is very much localized. The worst thing we are seeing is buyers who think they are more knowledgeable about the market and where it is headed. They often do not listen nor do they look at the facts or trends... these are the buyers who will miss the opportunities that exist here on the water in Florida TODAY!

Take a look at the chart above in regards to inventory being absorbed. 2008 was even worse, but look at the trend since February 2011! Look again at the start we had in March to June 2010. What happened there??? The Gulf oil spill happened which halted that momentum. However, we have been in double digit absorption for a year. Inventory is at record low levels... and the trend of moving to Florida has picked up again, primarily due to its affordability.

If you are interested in learning more about the Tampa Bay beach real estate market, join our monthly update email list. It is easy. Just us our CONTACT US ez form to send us your email and start getting information this month! Just tell us you want to be on the email list in the notes section. You, too, can own your piece of paradise and enjoy the Florida lifestyle that we all love so much!

Tampa Bay Beaches Continues Decline In Active Real Estate Listings

Click Here To Enlarge Chart
We continue to talk about inventory here along the beaches of Tampa Bay. January 2012 has continued the trend of dwindling real estate that is actively for sale. The chart at left represents the entire Pinellas County inventory! Active inventory is down 31% from last January with 3,672 fewer listings. Foreclosures alone are down 56% from last January!

According to the Pinellas Board of Realtors, there are fewer than 2 houses for sale for each buyer actively looking in the market. On the other hand, pending contracts were up 22% in January from this time last year. We will be talking about other market statistics in the days to come, but this trend is here in realty... right now. The PURTEE Team monitors the market and its evolving trends. You can sign up to get their monthly updates by sending your email address to info@floridagulfproperty.com

Retirement On The Horizon? Florida-Bound!

78 million 'baby boomers' begin their approach to retirement this year when those born in 1946/47 turn 65 and start qualifying for Social Security benefits. In 2003 and 2004, over 1000 people were moving to Florida a day! Builders were struggling to keep up with the demand. However, that process slowed dramatically as a result of increased property costs, insurance and the economic downturn.

As this determined generation gets back on its feet and once again looks toward retirement, Florida is returns as a top destination with its current depressed prices, no state income tax, pleasant climate, recreational and cultural activities and excellent senior care.

Tampa Bay offers the three dynamic cities of Tampa, St Petersburg and Clearwater... with the eclectic 23 miles of sandy white beaches and diverse beach communities. According to a recent survey, 58% of relocating baby boomers plan to purchase a home or condo in their destination city. So where are these seniors going to go??? Home building virtually stopped in 2007. Inventory has dried up back to 2005 levels. Very few building permits are even being pulled because building new can't be done at the prices we are at right now. So with no new building on the horizon, what will this mean for the retiring senior planning to come to this area in 4-5 years? It means start looking NOW while there are still some of these incredible value deals! Who can you trust to help you through this process? The PURTEE Team specializes is real estate along the beaches of Tampa Bay. With a diverse background or business, financial planning, negotiation, construction and design, Mark, Garges, Lambdin and Kathy are ready to help. Find out what they can do for you to get you on your way to living the "Florida Lifestyle". Read the article...