Foreclosed Duplex for Sale and Distressed Homes Dominate Tampa Sales

by on Foreclosures

Sales of foreclosed single family homes and foreclosed duplex for sale outnumbered traditional residential property sales in Tampa, Florida during the first two months of 2011. Housing analysts predict that this will result in further declines in home prices, particularly since more foreclosed properties are expected to enter the market in the coming months.

In January and February of this year, sales of foreclosed homes in Tampa recorded higher numbers than traditional home sales, with foreclosure sales totaling 2,619 against 2,532 traditional housing sales. Last year, a total of 1,154 foreclosed properties were sold during the first two months compared with 3,089 traditional residential sales. With distressed property sales outpacing conventional residential property sales, analysts are predicting that housing prices will decline by another 25% before they hit bottom.

They also stated that conventional housing sales will likely decline further in the coming months and will continue to be outnumbered by Florida foreclosures until banks are not the main players in the market anymore. Realtors reported that the January-February 2011 sales figures were even worse when short sales transactions are added, which reached a total of 1,098 during the first two months of the current year. All in all, distressed property sales accounted for almost 60% of total residential sales in Tampa over the two-month period.

Local analysts reported that the first time distressed homes and foreclosed duplex for sale outpaced conventional housing sales was back in August of last year. Since that time, the median selling rate of homes has declined to $130,500 from $158,000 prior to August. Foreclosed properties' median price, on the other hand, had plummeted to $60,000, while short sales' median rate dipped to $103,000.

In June 2006, before house foreclosures took over the home selling market, the median selling price for all residential properties in the metro area was $239,600. Although the huge price difference between 2006 and 2011 is not exactly good for the housing market, realtors asserted that any sale benefits the market. They claimed that these huge foreclosure sales will help clear out the distressed property inventory of the region which, in turn, will help speed up the recovery of the housing industry.

Analysts explained that sales of distressed homes and foreclosed duplex for sale are just recently rising because lenders were unable to get them listed earlier, owing to the poor condition of the economy. Now, the economy has improved from a couple of years ago and cash buyers have entered the market, giving banks more options in terms of home selling.