Florida Housing Market Reality Blurred For Many

Two years ago, SkyPoint condo was just a pile of dirt and a sophisticated plastic concept model, and Ann Blank stood in line for hours to buy a one-bedroom unit for $241,000.

Blank loved the design but made the decision based on what city planners and developers said downtown would become.

By the time it was finished, Tampa was supposed to fill up with entertainment and services that haven’t materialized. Blank thought it’d make a fine rental unit for a couple of years, then she’d sell for a profit.

“It was going to be great,” said Blank, a Florida Realtor.

Developers forged ahead and already plan two more, one of which is under construction.

But the market tanked, and now Blank, who is asking $1,500 a month in rent for her 800-square-foot condo, can’t find any takers.

Part of the reason for Blank’s trouble is that Florida mortgage costs are too high, and have thus driven up rental costs as well - but it’s also in large part due to the fact that many buyers had the same idea.

There are 286 condos in 15 buildings in downtown Tampa listed for sale on the multiple listing service, with an additional 127 downtown condos now advertised for rent on Craigslist.

Of three projects that are nearly complete, plus Trump Tower Tampa, which hasn’t broken ground, 180 of 1,046 units, or 17 percent, are for sale or rent.

Experts say what’s happening in the downtown Tampa housing market is normal for a city trying to reinvent itself as a place where people both live and work.

The difficult market puts added pressure on people who purchased units, and many could be stuck with Florida mortgage loan payments for longer than they anticipated.

Foreclosures, which are plaguing the single-family market, are likely to seep into the condo market, and that could drive down prices, said Mike Larson, a real estate analyst with Weiss Research in Jupiter.

“Urban renewal, revival was a great marketing pitch for condos downtown,” said Larson, who tracks Florida real estate. “What we’re seeing now, is that the promise was a little more hype than substance.”

Continue reading this Tampa Tribune article on the changing, complex face of the Florida housing market …