Homes sales tumble 19 percent in Tampa Bay area

By Jeff Harrington, Saint Petersburg Times Staff Writer - Posted: Aug 24, 2010

The expiration of homebuyer tax credits took a heavy toll in July as home sales in the Tampa Bay area plunged 19 percent from year-ago levels.

Statewide, existing home sales fell 14 percent compared to a year ago. The drop-off between June and July was even more stark, with sales off 25 percent statewide and 29 percent in the bay area.

Sales prices also turned south year over year, falling 9 percent to a median price of $130,500 in the bay area and dropping 7 percent statewide to $138,000.

Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness, said the loss of the federal tax credit geared toward first-time homebuyers "added a double dip to what has already been a harrowing ride in the Florida housing market."

The association representing Florida Realtors took heart that condominiums sales were improving, with activity up 11 percent compared to a year ago. However, the median condo sales price last month was $87,200, down 20 percent from the year-ago level of $108,500.

Nationally, the steep drop pushed homes sales down to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas.

July's sales fell by more than 27 percent from June to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.

Jennifer H. Lee, senior economist for BMO Capital Markets, called the numbers "truly gut-wrenching."

Those on the front lines of real estate describe an absolute standoff between buyers and sellers.

"What few buyers are out there circle a listing like a vulture, waiting from the day of its debut until it's left for dead, contacting us only after it has left the market to ask what it sold for and whether it's taking backup offers," said Glenn Kelman, chief executive of the online brokerage Redfin.

Times wires contributed to this report.