Real Estate Pro Articles

Signs Point Toward Continued Surge in Tampa Pre Foreclosures

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
Current signs and factors in the housing market are pointing toward continued surge in Tampa pre foreclosures.

Among these signs and factors are the continued decline in home prices, the continued rise in mortgage defaults, the high unemployment rate, the end of federal incentives, the rise in mortgage rates due to the end of mortgage buybacks and lack of construction jobs.

Home prices in the Tampa Bay area continued its downward trend, with the home sales price median falling by six percent from February last year to $120,000. In January, the sales price median was $125,600, which marked a 31-percent plunge from the January 2009 median and an 11-percent fall from the December median.

All in all, home prices in the Tampa Bay area have fallen by over 40 percent since their peak levels in 2006.

In the final quarter last year, almost 49 percent of all homeowners with mortgage loans in the Bay Area or 332,968 homeowners were underwater. Another 28,182 homeowners were approaching the underwater situation.

In February, the number of Tampa pre foreclosures and properties that have been listed for homes auctions in Tampa soared by 15 percent year-over-year and surged 10 percent month-over-month to nearly 6,700 filings.

Nearby counties also posted increases in filings, with Hillsborough County posting a 31-percent jump and Hernando County posting a 27-percent jump.

Foreclosure homes in Tampa contributed substantially to the nearly 7,000 total of units repossessed by banks throughout the state of Florida in February. They also helped pushed Florida up to its third ranking from its fourth ranking in the first month of the year.

In Tampa Bay, almost one unit for every six mortgaged homes is currently in default by more than three months. Many of those that are not yet delinquent are expected to follow those already in default because they were bought with Alt-A loans, which are set to adjust to higher rates this year. Adjustable rate mortgage loans typically reset after three or five years.

Plans to end federal supports to the housing market this year could also worsen the situation in Tampa. The termination of the federal tax credits in April could discourage buyers and the end of mortgage security buybacks could increase mortgage rates.

Lastly, the still bleak job situation in the area could add more homes to the already long list of Tampa pre foreclosures. The Tampa Bay Area hit a record-high 13.1-percent unemployment rate in January.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles