Local Real Estate Experts Expect to See Small Gains in 2011

Average sales prices for homes were down in 2010, but real estate experts say things could be looking up a touch in 2011 — at least for Central Tampa.

Seminole Heights, with its abundance of historic homes in one of Tampa Bay's more established communities, in particular may fare better than other area neighborhoods, projects Larry David Drane of Charles Rutenberg Realty.

"It has been a very desirable neighborhood for several years and continues to be," he said. "It may be even more attractive now that the prices have dipped downward."

Drane said Seminole Heights has been holding its own in terms of total sales, but the average sales price has dipped a bit.  

Although it includes an abundance of foreclosures and short sales — which drives the numbers south — the average price for residential sales in Tampa (year-to-date as of October) was $181,225, according to the Multiple Listing Service, or MLS. The average year-to-date in the same time period 2009 was $176,228.

"Prices may be close to bottoming out," Drane said. "Certainly, based on the concept of supply and demand, we are seeing more demand for homes. When that happens, prices have historically risen."

With interest rates hovering around 5 percent and restrictions easing up a bit on the lending industry, more buyers are on the prowl, said Cindy Argerious, a principal at home mortgage provider Bachman Lear & Company. Argerious did not discuss actual figures but said the last quarter of 2010 has been seeing a major uptick in calls for purchasing.

"I think that as we go into 2011, we are going to see more buyers buying homes," she said. "There will be more traditional sales, too," as opposed to the high volume of short sales that has taken place.

Argerious said South Tampa is seeing more traditional sales, while larger planned developments in Westchase and New Tampa are seeing more short sales and foreclosures because of the dense concentration of houses.

Neighborhoods like Seminole Heights, she said, are attracting a more "solid base" of potential buyers — those looking for actual home ownership as opposed to an investment deal.

Local real estate experts say buyers should take advantage of low prices, low interest rates and great inventory. Tomorrow may be too late.

As far as sellers, realtors say they need to forget about the love and money they put into their home and get realistic about the market. Prices are down, they say, and real estate is based on comparables. Curb appeal is essential.

Throughout the general Tampa Bay region, Ronald Zemetres of Re/Max says the bottom of the market has not yet been reached.

"We've finally come out of free-fall," he said. "Prices will go down, but slowly. I do see it falling a bit more next year until more jobs kick in. … In the latter part of next year is when prices will start to level off and maybe show a bit of an increase in winter time."

Zemetres said the best homes to purchase that have the quickest possibility of resale are single-family homes of the three-bedroom, two-bath variety — what he called "your bread and butter." Condos and townhomes are something he would prefer to stay away from.

"There's an abundance of them," he said.