Bravo Tampa real estate professionals (Miami, Orlando: mortgage broker, environment, credit)

[henrydeanjellybean]

Wow, this real estate market is really biting you in the rear now.

How can you explain what happened with the Tampa real estate boom? I will help you remember, interest rates went down to try and help our economy after 9-11. And then greed seemed to stand in the way of common sense, and some crazy real estate pros came in and started to think “Hey, since these idiots are saving money on interest rates I can jack up property prices”. So you built and built and built until Zephyrhills and other surrounding areas became unrecognizable. Even building really nice looking houses next to crack dens in Ybor and off Nebraska. Making unsuspecting new comers think that if they move to Tampa it will be just like Miami or Orlando.

Now we have all these new houses, not to mention the old ones just sitting on the market. You have young families worried about how they are going to pay for their mortgage after the real estate “PROs” lured them in with “100% financing everyone’s approved” adds not fully understanding what an adjustable rate mortgage is. You have taxes from city and county going up. Insurance rates going up, that’s if you’re lucky enough to get insurance.

I know it isn’t all the agents developers and mortgage brokers. It’s the homeowner that became greedy as well.

So now what are you going to do? Now that you have a bunch of empty houses, and families getting their houses foreclosed on. Jobs that pay the same as they did seven years ago, still the same crime as a few years ago and newcomers ready to move else where finding out that Tampa isn’t anything like Orlando or Miami.

Get your prices back down to earth and all will be well again. I don’t care how many Starbucks and McMansions you build. A crapy neighborhood is still just a crapy neighborhood.

And for those of you thinking of moving to Tampa, offer 35% of the asking price on what ever house you see.

I see nothing wrong with a modest profit, but what you people did was wrong!!! Capitalism is a wonderful thing until it is abused!!

[JSnFla]

its not a tampa thing. its much worse in south florida, much much worse. others parts of the country are having way worse real estate debacles than tampa as well. i just dont see a clear way out for tampa with all the surrounding issues and lack of high paying jobs.

[henrydeanjellybean]

You are right, it isn’t just Tampa, but Tampa is #1 on the Forbes list of best buyers market. That says to me that we are the worst, and I blame it on bad planning on the part of our city and county leaders. Not just in Tampa but all our surrounding areas. Yeah its bad in Miami and Ft Lauderdale, but they have one thing we don’t…. Good paying Jobs

[kristimc25]

First, of all government is to blame for bad economics. Keep the rate at a good level and keep if consistent. Homeowners are the ones that raised their prices to compete with inflation. Home values are still below the rate of inflation. Unfortunately, incomes did not rise with the home prices.

Second, realtors did not go out and hand pick people to buy a house and trust me, that was hard to spit out. 80% of home buying comes from the internet. Over 3/4ths of buyers use the internet to find their home. Once they find one, they go to the realtor and state they want a home for this x amount. In the meantime, regulators made it easier for first time buyers to get a loan and b/c of that reason along with the idealogy that homeownership should be had by all Americans, banks, builders, and mortgage companies pushed their regulated programs.

I guess that was third. The problem is this. A college student is bombared with credit cards that far exceed their income and get in a great deal of debt. Based on the media's philosophy and some leaders, we should make their debt disappear and not hold them responsible. I see ads for beer and wine all the time telling me that I will be cool, sexy, and relaxed if I buy it. Should I blame Busch for making me into an alcoholic? Luckily, I rarely drink.

Yes, realtors, lenders, and builders have had it good and did not really have to work for their money (some did and they will survive this media fueled crisis), and now the tide has turned. But the blame should lie on the homebuyer along with all the investors who decided they wanted to buy more than what we demanded, which is ridiculous! The homebuyer decided they wanted an expensive inaffordable home and this is before they realize that they can or cannot qualify for the loan. Put the blame where it should be and hold predatory lenders accountable for tricking people, b/c I promise Countrywide or BA or Wells does not trick people. Why equate apples and oranges? That makes no sense. Let's start accepting the blame where it belongs and move on or we will be in a big mess as fear drives the ecomony.
Respectfully,
Kristi

[deckardc]

It all comes down to greed, period.

Greedy wannabe Donald Trumps, most of whom never set foot in the state, trying to get rich flipping houses after watching an infomercial on TV. Modern day carpetbaggers.

Greedy developers who threw up tacky cookie cutter houses as quickly as they could to appease the demand of the flippers without regard to Florida's unique environment or inadequate roads.

Greedy sellers who stupidly thought their 1960 cinderblock rectangle of a house is actually worth $380,000 and not a penny less (and still do).

Greedy realtors who saw a way to convince people that 'if you don't buy now, you won't be able to afford it next year' or 'they're not making anymore land' and 'gimme my 6% commission'.

Greedy bankers who saw a way to profit on risky loans given to the people who were the least likely to be able to repay and convinced gullible people who earned $40,000 per year that they could afford to buy a $400,000 house.

Greedy government officials who just couldn't wait to get their hands on those rising property taxes and spend it on some useless project.

Add to this cauldron of greed the rising tax assessments and the obscene homeowners insurance rates. I've lived here for a long time and I once loved it so I have tried to stay fairly optimistic about Florida's future but I am starting to think I am fooling myself. I don't see how this entire situation can come to a good end. I think FL will be recovering for a long time. There is a long history of booms and busts here.

[Mike Peterson]

Originally Posted by henrydeanjellybean

You are right, it isn’t just Tampa, but Tampa is #1 on the Forbes list of best buyers market. That says to me that we are the worst, and I blame it on bad planning on the part of our city and county leaders. Not just in Tampa but all our surrounding areas. Yeah its bad in Miami and Ft Lauderdale, but they have one thing we don’t…. Good paying Jobs

It is #1 as best buyers market because they feel the area will have the best rebound in price, is not as overpriced as many areas and actually has something to offer job wise when compared to other areas down south like Naples. I don't know how you compute #1 as being the worst, must be the new math.

Now let us look at Tampa compared to Miami and Ft.Lauderdale. You say they have good paying jobs there as compared to Tampa.
The Median income for Hillsborough County is $45,129, for Broward is $46,673 and Miami Dade is $37,148. So Tampa is close to Broward and a good bit above Miami Dade.
The median home price for those areas is where you see the big difference.
Miami-Dade and Broward are around $245K and Hillsborough is around $171K.
Looks like you can make a decent living but live for less in Tampa.

[henrydeanjellybean]

Well of course you’re a bit defensive, you’re an agent.

Anyway Mike, I just read the reasons why Forbes named it the #1 buyers market. And yes it credits local economy remaining strong. Unfortunately agents such as yourself are a bit more optimistic than I am. I chose to read between the lines. Of course you want it better, its your bread and butter. But the surplus of unoccupied homes that are left over from the developers and investors will take its toll on people that just want to leave town, not to mention all the foreclosures that will soon take place.

[Mike Peterson]

Originally Posted by henrydeanjellybean

Well of course you’re a bit defensive, you’re an agent.

Anyway Mike, I just read the reasons why Forbes named it the #1 buyers market. And yes it credits local economy remaining strong. Unfortunately agents such as yourself are a bit more optimistic than I am. I chose to read between the lines. Of course you want it better, its your bread and butter. But the surplus of unoccupied homes that are left over from the developers and investors will take its toll on people that just want to leave town, not to mention all the foreclosures that will soon take place.

I am trying to grasp how countering you with facts is getting defensive.

The market has been down for over a year, inventories went up but in many areas are leveling off. The Tampa area saw some big price spikes during the last few years but nowhere near other areas and is still affordable comparatively speaking. The fact that we are quite a bit lower in price than Dade, Broward, Palm Beach, Orlando, Naples etc. is a good thing for this area and will help with the rebound.

No one is trying to say prices are going to spike back up but we should go back to a normal market here shortly.

[henrydeanjellybean]

Ok Mike I just took "must be the new math" as a bit defensive.

[henrydeanjellybean]

The problem is people are still asking $200.000 or better for homes that might be worth $90.000 at best. You have a working class in the area that didn’t fall for the mortgage games and knew they couldn’t afford these homes. Now you have over priced junk still on the market and families that would like to live in Tampa bay area but can’t.

Yes our area isn’t as high as Dade, Broward, and Palm Beach. That’s because we are not these other area’s, we are the Tampa area.

All I am saying is that these real estate prices need to come back down to earth.