According to the Tampa Bay Times, inventory is starting to tighten up for high-rise condos with views in the Tampa area. The original developers of several towers went bankrupt allowing for investors to come in and buy the units and sell them for more realistic 2012 prices. So while the number of sales have gone up, the average price has gone down. We feel the net result of that activity is good for the market. First, empty units and foreclosed condos are a drag on the HOA and can affect the building negatively. Second, if inventory tightens up we hope that the pricing will stabilize to current market levels.
The activity we’re seeing in Tampa Condos is also happening in cities around the country. Higher construction costs and tougher lending standards are keeping many developers from breaking ground on new condo towers, so existing units are selling a little faster. This is going to be the trend for the near future since even when developers do decide to pull the trigger and plan new buildings there will be around five years before any new inventory is ready for move-in.