Tampa Home Prices Drop
Home prices in the Tampa Bay area fell 19.6 percent this past year, the seventh worst drop among 20 cities in the S&P Case-Shiller home price index. Miami was the second worst with a 24.6 percent drop. The label of “Tampa Bay Area” encompasses a wide and diverse area, though and it’s worth pointing out that many of the factors of the housing bubble don’t necessarily apply to south Tampa.
David Stiff, Chief Economist of Fiserv Lending Solutions, one of the contributors to the index, lists several factors for the drop in the market. He mentions that as the land prices rose, many buyers were pushed further out from metro areas and into the suburbs. Others chose to buy more house by moving out where prices were cheaper. Speculators also moved toward the lower prices following the market for lower priced home that could be “flipped”.
With appreciation and the mortgage crises, the bubble eventually burst when home prices rose beyond the average buyer. Also, gas and energy prices are making it more expensive to maintain a home and commute farther distances. Stiff’s paper states that:
“Because of the reversal in trends that boosted demand for housing in outlying suburbs,
since they peaked in 2005 and 2006, home prices have generally fallen more in towns and
neighborhoods located farther away from urban centers.”
South Tampa’s urban character seems to be positioned well for the possible trend in home buyers, especially younger professionals, to move closer toward metro areas. Neighborhoods such as Hyde Park with historic appeal tend to keep their values better and it’s becoming clearer that traditional urban design works better. Shorter commutes to work and retail, walkable streets and mixed use buildings make sense when it’s expensive to drive. I like Lewis Mumford’s advice
Forget the damned motor car and build the cities for lovers and friends.
