Tampa Bay area condo news
[TAMPA, FL]
By Bill Stone
Industry News
(CLEARWATER) The Tampa Bay area recently was named as one of the top ten boomtowns of the country. Affordable housing and living costs combined with plentiful jobs, unparalleled amenities and a near-perfect climate continue to attract people to the area. The region enjoys one of the lowest unemployment rates in the country and personal income growth remains a respectable 6 percent. Despite job losses in the construction and real estate sectors, other industries such as the medical field and service businesses increased local employment to 1.2 percent over the past year. Such can be recognized in the area's real estate occupancy rate as relates to condominiums, the new darling of realty investors throughout the Tampa Bay metropolitan area.
According to the National Association of Realtors (NAR) the national median existing condominium price is $228,200. In contrast, the statewide median sales price for condominiums in Florida is $206,100, down 3 percent from last year's median price of $213,000. The Suncoast's housing market, at least in terms of price, is expected to decline even further according to PMI Mortgage Insurance Co.'s new U.S. Market Risk Index. The report attempts to gauge the future direction of U.S. markets by examining recent price volatility, affordability, employment rates and other factors. PMI concluded there is 34% chance home prices will decline in the country's top 50 markets in the next few years. It indicates Tampa Bay area homes have a 50.6% probability of experiencing a price decline in the same time frame.
The price decline has created a new demand for condos as investment tools. Condominium construction is rampant throughout the Bay area. New condominium projects are underway in downtown Tampa in addition to many of the area's beach communities. Clearwater for example, is approximately two years away from completion of its long-awaited $30 million Beachwalk design. "Beachwalk is a beach redevelopment project designed to make the area a more attractive destination," said Clearwater public information coordinator Diane Fitzgerald. A press release by the city of Clearwater indicates "Beach Walk is designed to bring visitors closer to the beach and provide an environment that will draw new hotel, retail, entertainment and restaurant business for out-of-town visitors, residents, and day trippers." Beachwalk will be anchored by four new private developments consisting of the Aqualea Resort & Residences, Gulfview Beach Resort, Kiran Grand Resort & Spa and the Sandpearl Resort. Collectively, the projects bring 735 new condominium units to Clearwater Beach.
At least one developer is so convinced of the positive investment returns to be had by investing in Tampa Bay condominiums, it not only guarantees occupancy but pays the taxes for the first two years. Ideal Location, Inc. Vice President of Business Development Robert Stec said, "It is a unique investment opportunity because for two years investors are guaranteed no vacancies and above market rents each and every month. This promotes a cash flow positive investment. The fact that your tenant is guaranteed and property management is in place for 24 months really creates a hassle free investment opportunity and a nice source of passive income. We received a tremendous response to our first project, The Club at Feathersound in Clearwater. In fact, the demand far outpaced the supply of these turn key cash flowing investments. We expect another fast sell out in Tampa, with price points around $200K."
Tampa Condos
By Bill Stone
Industry News
(CLEARWATER) The Tampa Bay area recently was named as one of the top ten boomtowns of the country. Affordable housing and living costs combined with plentiful jobs, unparalleled amenities and a near-perfect climate continue to attract people to the area. The region enjoys one of the lowest unemployment rates in the country and personal income growth remains a respectable 6 percent. Despite job losses in the construction and real estate sectors, other industries such as the medical field and service businesses increased local employment to 1.2 percent over the past year. Such can be recognized in the area's real estate occupancy rate as relates to condominiums, the new darling of realty investors throughout the Tampa Bay metropolitan area.
According to the National Association of Realtors (NAR) the national median existing condominium price is $228,200. In contrast, the statewide median sales price for condominiums in Florida is $206,100, down 3 percent from last year's median price of $213,000. The Suncoast's housing market, at least in terms of price, is expected to decline even further according to PMI Mortgage Insurance Co.'s new U.S. Market Risk Index. The report attempts to gauge the future direction of U.S. markets by examining recent price volatility, affordability, employment rates and other factors. PMI concluded there is 34% chance home prices will decline in the country's top 50 markets in the next few years. It indicates Tampa Bay area homes have a 50.6% probability of experiencing a price decline in the same time frame.
The price decline has created a new demand for condos as investment tools. Condominium construction is rampant throughout the Bay area. New condominium projects are underway in downtown Tampa in addition to many of the area's beach communities. Clearwater for example, is approximately two years away from completion of its long-awaited $30 million Beachwalk design. "Beachwalk is a beach redevelopment project designed to make the area a more attractive destination," said Clearwater public information coordinator Diane Fitzgerald. A press release by the city of Clearwater indicates "Beach Walk is designed to bring visitors closer to the beach and provide an environment that will draw new hotel, retail, entertainment and restaurant business for out-of-town visitors, residents, and day trippers." Beachwalk will be anchored by four new private developments consisting of the Aqualea Resort & Residences, Gulfview Beach Resort, Kiran Grand Resort & Spa and the Sandpearl Resort. Collectively, the projects bring 735 new condominium units to Clearwater Beach.
At least one developer is so convinced of the positive investment returns to be had by investing in Tampa Bay condominiums, it not only guarantees occupancy but pays the taxes for the first two years. Ideal Location, Inc. Vice President of Business Development Robert Stec said, "It is a unique investment opportunity because for two years investors are guaranteed no vacancies and above market rents each and every month. This promotes a cash flow positive investment. The fact that your tenant is guaranteed and property management is in place for 24 months really creates a hassle free investment opportunity and a nice source of passive income. We received a tremendous response to our first project, The Club at Feathersound in Clearwater. In fact, the demand far outpaced the supply of these turn key cash flowing investments. We expect another fast sell out in Tampa, with price points around $200K."
Tampa Condos
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