Housing Starts Slow as Florida Home Loan Demand Lessens in Tampa

Looking for a Florida home loan in Tampa Bay? Here’s the good news: there are plenty of houses from which you may choose.

Don’t wait too long, however, because single-family housing starts in the city dropped 14.4 percent during the second quarter of 2006; therefore, buyers that wait too long will have less and less of a selection front of them. Tony Polito, director of Metrostudy’s Tampa division, said starts for the year are still up 4.4 percent, with 21,847 more units under way.

Polito said that most of the housing starts are taking place in Hillsborough and Pasco counties, although the two areas are going in opposite directions. Hillsborough is down 4 percent for the year with 10,464 starts, while Pasco is up 14.2 percent with 7,720 starts.

“Hillsborough’s decline in annual starts was driven by constrained lot supply,” Polito said in a release. “During the next two quarters, Pasco and Hernando will experience a decline in annual starts. However, the slowdown will be driven by lessening demand rather than a shortage of lots.”

While new construction my be taking a break, closings on Florida home loans are upfor the year, with 20,220 units in 2006 - still 11.5 percent better than the 18,128 units closed in 2005, when speculative purchases are removed from the equation.

In the Sarasota-Bradenton region, single-family starts are down 29.4 percent from last year. Starts for the year also are down 2.4 percent, to 8,738 units.

Polito said ,as of June 30, Sarasota-Bradenton had its highest level of finished vacant units in history with 2,564 units representing a 35 percent ratio to total inventory, or a 4-month supply. However, Polito admits that the housing market is knee-deep in a demand-driven environment. Those seeking Florida home loans are in the financial driver’s seat.

“While we expect 2006 and even early 2007 to be more challenging for sales, the backlog of under-construction inventory will continue to provide increasing closing numbers through the end of the year and the market will become more balanced,” Polito said.