The housing market in Tampa has taken a turn for the better due to several factors, the first of which is the significant return to a seller’s market. One of the areas in Florida that is benefiting from the status of more buyers than sellers, the demand is driving up housing prices in Tampa Bay.
At the same time, short sales in Tampa are having better results with completion, reducing the amount of foreclosures and resulting in a better ending for all concerned. Accepting less than the balance owed is a less bitter pill for the lender than foreclosure. A new owner now has a desirable piece of property at the agreed price. The seller typically receives a 1099-C, used for cancellation of debt, by the end of January the following year. The amount forgiven is considered income and must be reported when filing taxes.
How have banks managed to find the way to improve the results of short sales? The inventory of distressed sales was moving slowly at first. Short sales, which accounted for more than half of that inventory, forced the banks to rethink their methods in working to get the sales closed. Approving the seller’s request for the property’s short sale meant reviewing the offer from the buyer and determining its merit. In addition, realtors in Tampa familiar with short sale requirements and forms assisted sellers with the documents needed to shorten the months of waiting for approval.
Other things that have affected the housing market around Tampa are low home prices and the opening of new businesses and centers. The unemployment rate is dropping as more positions become available. As potential homeowners and investors take note of the stimulated economy in the area, homes are being bought up, leading to the seller’s market previously mentioned.
Homeowners that have been considering putting their property up for sale recognize the signs of recovery. If there is no pressing need to list their home at this time, such as relocation or late payments, the prospect of waiting for a higher selling price induces them to wait. That has contributed to the inventory reduction, bringing it down to a three-month supply. The result emphasizes the need for additional for-sale properties, as this is the time of year when families traditionally consider moving to another area.