Problem of Cheap Land Foreclosure and Low-Priced Houses Eased in Tampa

by on Foreclosures

Since the start of the real estate crisis, Tampa, Florida, has been ranked top among all U.S. areas in terms of number of cheap land foreclosure and biggest drops in residential property values. During the first quarter of the current year though, the metro area was knocked off its perch, giving the local market some cause to celebrate.

Problem of Cheap Land Foreclosure and Low-Priced Houses Eased in Tampa

Although the number of foreclosed homes in Tampa is still very much elevated and values of residential properties in the region are still tanking, the metro area dropped to number eight in terms of markets in the U.S. that posted the biggest decline in residential values during the quarter January-March 2011. Local analysts stated that Tampa's housing is still mired in crisis, but at least it is not the worst in the whole country anymore.

With foreclosed homes in Florida expected to rise again in the coming months, local analysts stated that first quarter figures allowed Tampa to have some breathing space. Values of homes in the metro region plummeted by 3.8% during the initial quarter of 2011, with its median residential price pegged at $107,200 during the period. In the first quarter, seven other metropolitan markets posted bigger value drops than Tampa, with Detroit ranking first with a decline of 5.2%.

However, for the state of Florida alone, the oversupply of cheap land foreclosure and bargain-priced houses in Tampa still made it the area with the biggest drop in residential values among all local markets during the three-month period. Orlando posted a price decline of 2.9%, while Miami-Fort Lauderdale's housing values dropped by 1.8%. Sarasota, on the other hand, maintained a flat value, while Fort Myers was only one of three metropolitan markets that posted a value increase at 2.4%.

Fort Myers was joined by Champaign-Urbana in Illinois and Honolulu, Hawaii, with both regions posting a 1% increase in housing values. According to housing industry analysts, the huge amount of bank houses for sale is still the main reason for the continuous drop in housing prices in most areas of the U.S. Nationwide, values of homes plummeted by 3% during the quarter, with the country's median rate pegged at $169,000.

Florida housing market observers claimed that the problem is not over for the state and for most of the U.S. They stated that, as long as the number of foreclosed houses and cheap land foreclosure remains elevated and the job market remains in a slump, the real estate sector will not be able to fully recover.