Although the Tampa real estate market faced many obstacles and experienced many struggles in 2009, many real estate experts believe that there are signs that the Tampa real estate market is set to make its recovery in the coming months.  Recent increases in the home sales and the slowing decline of the median sales price in Tampa provide real estate experts with optimistic views of the Tampa real estate market’s future.  Realtors believe that the general affordability of housing in the area, low interest rates, and the federal first time homebuyer’s tax credit are all major incentives that will play a large role in influencing the future recovery of the Tampa real estate market.

According to the St. Petersburg Times, Tampa Bay has suffered many real estate losses over the past year as a result of the economic recession that began in 2008.  Tampa Bay has suffered from high foreclosure rates, which have contributed to the 40 percent loss in housing values throughout the area.  Unemployment has been a major concern for many homeowners, and it has been one of the leading causes for foreclosures in the Tampa Bay area.  Home sales were also down by 90 percent in 2009 from the peak reached in 2005.  Real estate development has also been slow due to the bankruptcy of numerous construction companies in Tampa.  However, despite the past struggles that Tampa Bay real estate has faced, many experts believe the market still has everything it needs to make a full recovery in the near future.

Tampa Bay Online has recently reported the significant gains made to the Tampa Bay real estate market.  According to Tampa Bay Online, the region posted a 34 percent gain in home sales during the month of November.  Median sales prices have also been reported to have stabilized, declining much more slowly than it has in previous months.  Realtors have also posted a 46 percent gain in home sales from the month of January, but sales are still down 10 percent from the peak reached in 2005.  Nevertheless, real estate experts are hopeful that these are signs that the Tampa real estate market is gaining the momentum it needs to begin its recovery.

Despite real estate development activity in the Austin region, many real estate experts are concerned that the recent developments aren’t enough to promise improvements in the Austin real estate market in the coming months.  Since the economic recession of 2008 began, Austin’s commercial real estate market has struggled greatly with high foreclosure and vacancy rates, and real estate experts have noted that Austin’s residential real estate is largely overpriced, which is not good given that during the current economic times, prospective homebuyers are only interested in affordable housing.  Although slight improvements may be made in the coming months, real estate experts believe that Austin real estate levels will most likely remain stable throughout 2010, with 2011 bringing about recovery.

According to the Austin American Statesman, the commercial real estate in Austin has suffered great losses since the beginning of the economic recession that began in 2008.  Commercial real estate foreclosure rates have more than doubled between 2008 and 2009, making Austin one of the worst-performing cities in Texas.  Residential real estate in Austin has also suffered from high foreclosure rates.  Real estate experts have attributed the high commercial foreclosure rates to the numerous local businesses struggling to stay afloat.  Austin also suffers from high unemployment rates, with many businesses continuing to layoff workers.  The concern for job security plays a major role in determining the success of the residential real estate market in Austin, because many prospective buyers will only invest in real estate if they are confident that they will keep their job and a steady source of income to use towards paying off the house.

The Austin Business Journal has reported that the residential real estate in Austin will also continue to suffer in the coming months if sellers aren’t willing to lower prices.  National realtors have found Austin to contain a large inventory of overpriced homes, which is surprising given that Austin tends to be one of the more affordable housing market in the nation.  However, as long as prices remain high, homes are unlikely to find buyers.  Throughout the nation, only the affordable markets are the ones showing improvements, luxury markets continue to remain sluggish.  Many homebuyers are only interested in investing in affordable or “bargain” priced homes that have been previously foreclosed on or are being drastically reduced in price out of desperation.