While a one-two punch has left realtors in Tampa bruised and battered, they’re not down for the count.
The first jab was delivered by a crippling residential and commercial lending crunch; now the real estate market is dodging a full scale knockout from the recession which has resulted in lost jobs, decreased demand for space and wary consumers.
Depending on who you ask, some people are saying that 2009, even though it is half over, is not going to be a very good year for real estate. Many are looking for lending woes to worsen and for marketing fundamentals to weaken across the commercial real estate market. Hoping the bottom is near; the residential side of real estate has been in a freefall for the past four years.
Many new home projects sit half finished as do commercial projects due to the lack of funding builders are able to obtain. Tampa homes for sale and others who have loans expiring in 2009 will be looking for replacement financing when the banks are not wanting to add more real estate to their holdings.
In 2009, several of the collateralized mortgage-backed security loans that were issued several years ago are going to be coming due. In many cases, the weaker economy means property is likely to be worth less than it was earlier in the decade. A lot of property owners will have to pony up some of their own money in order to satisfy part of the loans; that is if they are lucky enough to find a lender willing to give them a replacement loan.
Unfortunately even the brightest commercial market, the apartment rentals market is starting to show signs of weakening. Tenants are clearly seeing the effects of the weakened economy, more late payments and empty apartments are being seen across-the-board.
Many people believe they will see the bottom of this downturn in the residential area by the end of this year. With low interest rates, first-time homebuyers should be coming out of the apartments. Additionally, the government is getting into the act with their first time home buyer incentive program that gives a first time home buyer an $8,000 tax credit for their 2009 taxes.
19 Davis St,
Burwood East VIC 3151,