Is the worst behind us? We think so.

Record low interest rates, at an average of 3.89 percent for a 30-year fixed mortgage, are fueling the trend toward an increase in mortgage applications, stabilizing prices and lower inventory.

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 13, 2012, mortgage applications were up 23.1 percent from the week before. Rates continue to inch lower, partially based on anxieties over the European financial crisis.

Median single-family home prices in the Bay area peaked in 2007 at $239,600, and then fell to a low of $110,000 in January 2011. Prices actually rose in 2011, and the current median price hovers around $125,000.

Housing inventory in the Tampa Bay region has decreased from a high of almost 24 months a couple of years ago to a current supply of less than six months, the lowest inventory level in five years. A "normal", or balanced market shows 4.5 months to six months of inventory.

So, what does this mean on the street? We are working with many buyers right now in many different price ranges, and we are having a hard time finding properties for some of them. A property this past week one of our buyers had an interest in had five offers in two days. In some cases we are sending letters to particular neighborhoods looking for properties for clients.

There are great deals out there and we don't see any need to rush, but if you have been on the fence for the past couple of years it might be time to jump in and start looking seriously. And there is no better way to get started than to Contact us and get the ball rolling...

Source: Tampa Bay Time