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5 Cities Where Home Prices Hit New Lows

Tampa

  • Home prices compared to July 2006 peak: -48%

Home prices in Tampa are at their lowest level since 2002 and down 48% from their peak in 2006, according to S&P/Case Shiller. Experts say luxury homes and condos account for most of the value that was lost and that those properties haven’t hit a bottom yet. In the past six months, Tampa house prices fell about 3%, and though that’s lower than the national average, experts say there are likely more losses to come for this sunny city before things get better.

Luxury homes, specifically those selling for $750,000 or more, have been sitting on the market for at least six months and as of late are selling for as little as half the asking price, says Denise Carter, real estate agent with Re/Max Action First in Tampa. Many homeowners purchased these homes with a jumbo mortgage and after losing their job have been unable to keep up with mortgage payments, she says. To avoid foreclosure, they’ve been selling their homes at a discount to willing buyers and often doing short sales. (With a short sale, a home sells at a price that’s lower than the amount the borrower owes the lender.) Condos are also lingering on the market, says Carter, and are posting some of the largest price drops. Many condo owners in Tampa owe more on their property than it’s actually worth, she says.

Not all of Tampa is in the dumps, say experts:  Buyer demand is rising in some of the more affordable neighborhoods. Carter says that over the past couple of months, single-family homes that are asking less than $300,000 and are in move-in condition have been selling within a week of being listed for sale. The number of homes listed for sale is also dropping: There are nearly 15,800 homes on the market in the Greater Tampa Area — about half of what they were 12 months ago, says Willy Culkar, a real estate agent with Lipply Real Estate in Clearwater.

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Tampa’s skyline
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