The health of the real estate market has a major influence on the health of the Tampa Bay area's overall economy. Jason Pithers is a broker associate for Coldwell Banker Residential Real Estate, who works with his wife and business partner, Dyan. Pithers has been closely monitoring trends that bode well for Tampa Bay area homeowners and buyers, especially in the luxury real estate market.

"What we have certainly seen over the past 12 months is increased market activity in luxury real estate, which means properties selling for $1 million and higher," Pithers says. "There has been almost a 20 percent increase in property sales in the $1 to $2 million range in Hillsborough County, compared to the previous 12 months."

Along with increased confidence in the housing market, the number of distressed sales, including foreclosures and short sales, has decreased in the area luxury market. Pithers identifies that as an important market statistic.

"Only about 5 percent of the total sales over the last 12 months for homes listed over $1million have been distressed properties, compared to 14 percent in the 12 months prior," Pithers explains. "That is a considerable drop."

While the multimillion-dollar real estate market has remained fairly stable and consistent in the Tampa Bay area, Pithers says that the $1 million to $2 million housing market is expanding.

"My personal feeling is that the typical luxury property buyer is much more comfortable in the $1 to $2 million range, as opposed to the $2 to $3 million range, where many buyers were before," Pithers says.

"The current luxury property buyers are looking for a comfortable home," Pithers continues. "They are looking for the classic four-bedroom, four-bathroom, office and a bonus room configuration, ideally with a three-car garage. They don't want 6,000 or 7,000 square feet when they can fit comfortably in a 3,500- to 5,000-square-foot home."

During the real estate's busy season between May and July this year, Pithers saw how brisk the market is.

"Many corporate relocation clients came to town looking to get their family settled over the summer before the start of the new school year," he says. "There were so many buyers looking for luxury homes, particularly in the $1 to $1.5 million range. Many of the buyers I worked with could have afforded more, but they seemed to be much more comfortable buying a quality home in that more manageable price range rather than spending more."

Pithers says that many of his relocation clients, without children at home, mentioned that the Tampa Bay area market needs more high-quality, smaller homes.

"To get the quality they want, they are having to buy larger homes in the 4,000- to 5,000-square-foot range, when they are actually looking for 2,800- to 3,000-square-foot homes," he explains.

These factors are solid indicators to Pithers that the Tampa Bay real estate market as a whole is poised for a comeback.

"The housing market in the Tampa Bay area went through a meteoric rise throughout the early 2000s and through an even greater crash from 2006 into 2010," Pithers explains. "As a result of that, we have bottomed out and bounced back quicker than other markets. We see this continued trend of low inventory and steady sales. For Dyan and I, the third quarter of 2012 has been our best quarter in six or seven years, and I believe that is the case throughout Coldwell Banker offices."

Of course, many homeowners, especially those who purchased properties in the $400,000 to $750,000 price range, have seen their property values drop by as much as 25 to 30 percent, putting them underwater with their mortgages.

"Many of those homeowners continue to make their mortgage payments, which is the right thing to do, rather than face the heavy burdens of the foreclosure market," Pithers explains. "The market will bounce back over time, and hopefully property values will increase at a more moderate rate of 2 to 4 percent per year, unlike the 10 and 20 percent increases we were seeing less than a decade ago."

Pithers says that Coldwell Banker has a strong presence in all of Tampa Bay's real estate markets, not just luxury properties, but residential, commercial and property management as well. "We have convenient offices all over the Tampa Bay area, and we continue to be the brokerage that sells the most real estate," he adds.



Source: TBO