Tampa Real Estate Favors Buyers; Sellers Seek Pre-Approved Florida Home Loans

Across the state, agents are coming up with innovative techniques for strengthening demand for Florida home loans. This goes to show how it’s become a buyer’s market over the last year or so. As sellers and Realtors make adjustments to satisfy the demand of potential owners, they remain optimistic.

“We’re making a return to fundamentals,” said Charles Richardson, Market Street Mortgage Corp.’s senior VP for the Southeast Region. “Last year or the year before, every seller in town would take a contract with no requirement of an approval letter and no discussion with a lender. But there’s been a big change in the market where the buyers are being demanded to be more thorough with the mortgage part of the deal earlier.”

The changing Tampa housing market

In the past few years, demand was strong and supply was low. Coupled with increased property values and construction costs, single-family home prices in Tampa Bay skyrocketed in price. There were jokes that homes entering the market in the morning could be sold before dinner - as multiple people would try to outbid each other on houses and Realtors did everything they could to catch up.

Most potential buyers needed nothing more than a pre-approved Florida home loan up to a certain amount from a bank. With demand softening, however, lenders are becoming part of the process much earlier again, as many sellers ask for more than just a pre-approval. They now need loan commitments.

“That’s far different from just getting a pre-approval,” Richardson said. “Loan commitments are happening much earlier in the process, which requires us to take care of things like the appraisal and the title work. Lots of detailed stuff.”

More normalized demand emerges

Dave Thompson, a development associate with Wood Partners, says when it comes to Tampa, real estate “softening” equates to stabilization.

“Overall, the crazy times in the real estate market are definitely coming to a close,” said Thompson. “But if you can design the right product in the right location with the right amenities at reasonable price points, then all the fundamentals are still in place in Tampa.”

Brad Horner, executive VP with Coldwell Banker’s The Condo Store, agrees.

“Properties aren’t selling out in a month like they did last year, but we are experiencing a more normal sales pace,” Horner said. “The Tampa Bay market and the markets throughout Florida are doing very well. I would say that it’s very comparable to Orlando right now, as well as Jacksonville and Daytona, all of which I would say is very active as compared to South Florida which is definitely a bit slower.”

As the are levels off and those looking to move to Tampa hope to find a reasonable Florida home loan, demand should increase again. It’s far from time to panic for sellers, as many believe 2006 will be the third strongest year for real estate on record.