Tampa home prices reach 2001 levels
TAMPA - Home prices in the Tampa metro area are back to what they were 10 years ago. Adding to that pain, 57 percent of homeowners owe more on their mortgages than their homes are worth, according to Zillow.com's third quarter home data report. The Tampa metro, which includes Hillsborough, Pasco, Pinellas and Hernando counties, saw third quarter home prices fall 9.2 percent, compared to the same quarter last year. Prices fell 3 percent from the second quarter. Making that news even harder to swallow is the realization that prices are so much worse here. Nationally, home values were flat this quarter and down 3 percent from the same period last year.More Tampa area homeowners are underwater on their mortgages, too. The national negative equity rate is 29 percent. The only silver lining is that at least Tampa's negative equity rate didn't go up. Here are some other interesting points in Zillow's report: Home values in Tampa have fallen more than half, or 52 percent, since their peak in May 2006 and are now back to the level they were at in September 2001. Nationally, home values have fallen 29 percent since the peak in June 2006. Nearly half, or 48 percent, of all homes sold in September sold for a loss. Nationally, 34 percent of all homes sold for a loss during the month. Of the 157 markets Zillow tracks, 135, or 86 percent, showed declines in home prices. Eleven markets saw prices appreciate. With home prices the same as 10 years ago, one would think that would entice buyers to act, said Zillow's Chief Economist Stan Humphries. But the troubled economy is keeping that from happening. "Home affordability is at historic lows courtesy of a large reset in home prices and continued low mortgage rates," Humphries said. "We're clearly dealing with a crisis of confidence that is keeping potential buyers on the sidelines, fueled largely by high unemployment and more general economic uncertainty."
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