The housing market in Florida is slumping as the speculative element  is getting out and buyers remain wary as they wait to see what will happen. Tampa Bay saw a 29 percent decrease in volume with a 1 percent price increase. This tells me that sellers are holding firm on pricing while buyers are showing patience. The marketplace will stagnate or decline until a foundation is set.

While some are very upset, this is just the markets at work and make capitalism such a great economic system. We will have periods of passion and despair in short term periods, but over the long term, the  market will find a consistent trend.

This mirrors the statewide trend, which saw a 20 percent drop in homes sold, to 13,539 from 16,916 in February 2005. Rising inventory levels and still-low mortgage rates are contributing to better balance the marketplace, FAR said in a release.
Realtors from across the state report that the supply of homes available for sale in their markets is improving, offering buyers more housing opportunities. The statewide median price for single-family existing homes last month was $244,200, up 24 percent from the February 2005’s statewide median of $197,700. In Tampa Bay, home prices inched up 1 percent, to $222,200 in February, from $216,700 in January. But that represents a 27 percent increase over the same period last year via Tampa Bay Business Journal.

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