In Tampa Bay Housing Market, Sellers and Realtors Hope Holidays Pay Off

The fact that Florida mortgage rates are slightly on the rise isn’t encouraging news to sellers and Realtors. But here is something they can look forward to:

The holidays.

Thanks to tax implications, December closings are typically a popular across Tampa Bay and other parts of the state. The question now is whether the sluggish 2006 will show a holiday bump that could also add momentum into next year.

“Things are picking up, and if you’re a savvy buyer, you know that already,” said Hermun Puri, a Realtor with Keller Williams Realty’s Fate Team in Tampa. But many of the issues that led to the market slowdown are still in play, like insurance and taxes, so while potential Florida home loan borrowers might be venturing out to test the market again, there’s no guarantee they will be ready to commit.

The Homestead deadline

December has traditionally been a good closing month for sellers, averaging a 27.9 percent increase between November and December for existing homes between 2003 and 2005, Florida Association of Realtors data shows.

“At the end of the year, there’s usually a push to close,” said Cathleen Smith, Coldwell Banker’s regional senior VP for the Tampa Bay region. “If they don’t close in time, they won’t get their Homestead (exemption) for the year, and that’s $25,000.”

Interest from buyers was higher in years before the tough hurricane seasons of 2004 and 2005 prompted higher insurance rates. Also contributing to 2006’s unpredictability is the slight dip in the median price, which shows buyers paying practically the same amount they did a year ago during the housing boom and 31 percent more than two years ago.

State elected officials appear to be working on ways to alleviate skyrocketing insurance costs, but they may be too late to help December sales, said Brad Monroe, president of the Greater Tampa Association of Realtors. He’s afraid Florida home mortgage numbers won’t match those of the past.

“Our November numbers were fairly lackluster in terms of sales, but I have had a dozen people tell me that things really seem to be picking up,” Monroe said. “They’re getting more buyers’ calls, more activity, so hopefully we’ll be seeing some turnaround.”

End of investor interest

“It was a true success for us in 2006 to pull this many sales together,” said Felix Amon, CEO of Amon Investments, who is building the $50 million, 126-unit Station Square on Cleveland Street. “The media was drumming that there was an oversupply of property, and who knows if we can ever absorb it. We felt that if we could manage to meet a 60 to 65 percent sales quota, we were going to build it. We did, and we estimate the market will come back as well in 2007 or 2008.”

If there was any positive in the 2006 housing market downturn, it would have to be found in what it created, said Puri, who became a Realtor while the boom was still on.

The investors are gone, so those buying homes in Florida are people planning to stay, Puri said. Joining those investors out of the market are Realtors who were just looking to make a quick buck while the market was hot.

“I’m in it for the long run,” Puri said. “If you can make it through this period, you will be doing great on the other side.”