Saturday, 21 September 2013

Tampa Prices, Sales Continue Strong Growth

Tampa home prices continued to show strong growth in August 2013 with the median price of 23.1% over August 2012. The average price was up 15% and close sales improved 10% over the previous year. At 4.4 months supply inventories are starting to creep back into the system but still down 22.5% from the almost 6 months of inventory in August 2012.

These statistics are particularly positive as they come in three months after major interest rate increases. There was further good news on the interest rate front this week as the Fed indicated no intention to clawback its bond and mortgage-backed securities buying.

One of the major underlying reasons for the strong real estate recovery in Tampa has been employment. After seeing rates peak of over 12 1/2% in 2012, Tampa has staged a remarkable recovery. Unemployment has returned to national average rates and was under 7% for most of the spring and summer of 2013. Well the August unemployment rate has not been published the total nonfarm employment is the highest it has been in a six-month period After a brief pullback in June and July. Construction activity has also been a strong performer recently where it had been virtually non-existent after the housing crash. Tampa is the 16th most active new construction market in the United States in 2013.