Tampa Bay Housing Market Forecast: Gloomy

Sales of existing homes in Florida took another dive in March, falling 28 percent from a year ago, according to the latest report from the Florida Association of Realtors. In the Tampa Bay housing market, it was even worse: only 2,502 homes sold, or 38 percent fewer than in March 2006.

Prices continue to plunge as well, with the median price in the state falling 4 percent to $236,000; while in Tampa Bay, the median price dropped 4 percent to $209,700, the lowest price since June 2005.

The median sales price dipped 5 percent to $164,100 on condos, as well. It’s all a gloomy sign for sellers - but it means that Florida mortgage borrowers have the opportunity to take advantage of great deals.

The real estate market has been in a prolonged slump for more than a year, although Florida housing prices continued to rise until July 2006, despite slowing sales. Now both factors are in free fall.

At least buyers are feeling the benefits of falling prices and stable Florida mortgage rates. Last month’s 30-year fixed mortgage averaged 6.13 percent, down slightly from 6.32 percent in March.

Rising foreclosures are impacting inventories in some markets, according to housing industry analysts, who predict that tighter lending standards and the fallout from subprime Florida mortgage loans will slow the housing sector’s recovery.

The Florida Association of Realtors provides programs, services, continuing education, research and legislative representation to its 170,000 members in 68 boards/associations.