Real Estate News for North Pinellas County

Archive for July 1st, 2009

New data indicates declines in Tampa Bay home values may be slowing

Are we finally starting to see some stabilization in the value of homes in Pinellas County? According to Standard & Poor’s Case-Shiller Home Price Index, the answer might be yes.

Scale 3According to Index data released yesterday, home prices in Tampa Bay fell 0.7 percent from April to May. That works out to an annual rate of 8.4 percent — the lowest rate in quite a while.  Just two months previously, the 30-day decline was 2.7 percent, which translates to an annual rateof decline of 32.4 percent.

The Index said the annual decline of home values from April 2008 to April 2009 was 21.3 percent, the seventh-worse performance among the 20 cities that the index tracks. The worst was Phoenix, which recorded a home value decline of 35.3 percent.

Here is why real estate agents and others are watching these statistics: What we have been seeing for some time now is a steady increase in the number of home sales in Tampa Bay, accompanied by an equally steady decline in sales prices. The increase in sales has contributed to a decline in the home inventory in the Multiple Listing Service, which is good; but home prices have been continually forced down, due in part to foreclosures and distressed sales.

These trends have made us wonder just where the bottom of the market is in terms of home values. These new figures from Case-Shiller may help us find that answer. Of course, it is only one month; and other variables such as higher mortgage interest rates could slow sales and depress home values all over again.

If you would like to see the S&P Case-Shiller Home Price Index data for yourself, go here.

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