Throughout the Tampa Bay Area it is being widely reported that residential real estate sales and prices are inching upward in 2013. Some newspapers have even labeled it a "Seller's market". A closer look reveals some interesting facts that don't bode well for a stable residential real estate market. Our market was heavily over built from 2003-2006 and we later found out that a lot of the home buyers were actually investors looking for quick profits. It got so crazy that investors were selling and re-selling to other investors and prices just kept skyrocketing ever higher. We may once again find ourselves in a similar situation to what was experienced in 2006-07 when the real estate bubble inevitably popped.
In 2013 investors have once again flooded the Tampa Bay residential real estate market. They offer cash deals that banks and mortgage companies seem to favor over legitimate owner/occupier buyers who must seek mortgage financing to purchase. In some cases investors offering lower cash offers are winning out over higher offers by owner/occupier buyers who must finance their purchase.
The early results in 2013 seem to show a false real estate bubble that may be destined to pop when these investors can't find legitimate buyers for the foreclosures they bought up in 2013. In the meantime owner/occupiers hoping to take advantage of low affordable prices are being pushed aside by cash investors.
The "supply and demand" concept can only be truly measured when we look at current local home inventories in correlation with population figures, per capita income and unemployment rates. If we don't have owner/occupiers for the inventory of current homes in the Tampa Bay Area then there really is no true "Seller's market". Instead we once again have an "Investor's market" and a real estate balloon that is once again destined to pop!