Home Prices Decrease Due to Increasing Tampa Foreclosures

The increasing in the Tampa area is pushing down the home prices in that region. The numbers of foreclosures in the greater area (including Saint Petersburg and Clearwater) increased by 17 percent in the first quarter, in comparison with the first quarter of the previous year and in comparison with the last quarter of previous year, where it increased by almost 22 percent. In the Tampa Bay area, the total number of filings for foreclosure reached 19,284 units in March. >

In the United States, despite the slowdown of foreclosure rates in the various states that were severely hit by foreclosure, in , the foreclosure rate was still very high. Except areas like the Naples-Marco Island area, the Port Saint Lucie area, and the Cape Coral-Fort Myers area, all the 15 other housing markets in Florida that were reporting a record number of foreclosure properties among the biggest metro areas of the country, reported an increased number of foreclosures in the first quarter of this year.

Eight of the top ten metro regions in foreclosure rates reported a slow down in foreclosure activities. Among these areas, there was one Florida metro area called the Orlando-Kissimee area. It posted an over 17 percent increase in foreclosure filings. Increasing number of foreclosed properties that are up for sale in the Florida metro areas are pushing down the prices of homes that are up for sale across the state.

Across the country, the Tampa area is facing the highest level of price drops due to the increasing foreclosure activities in that area, despite the fact, that during the real estate market boom, the area observed the highest level of home price increases; prices shot up almost by 79 percent. According to data published by the local realtors, the prices of homes that were up for sale decreased by almost 6 percent over the last one year. A home that was bought during the boom in the housing market for $340,000 is now being listed only for $160,000.

A very recent report of Standard & Poors/Case-Shillerfor housing index says, House prices in the cities of Tampa, Charlotte, New York, Las Vegas, Seattle and Portland, posted new records in price declines in February.

In February, the S&P index of housing prices fell to 136.54 in Tampa. Compared to January, these home prices fell in the area by 1.2 percent, and in comparison with December 2009, they fell by 0.5 percent.

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