Tampa Bay area home bargains lift sales

Beefed up by bank sales of foreclosure properties, Tampa Bay area home sales rose 5 percent in July, a positive trend mirrored in 11 of 20 Florida metro areas.

Sales in Pinellas, Pasco, Hillsborough and Hernando counties totaled 2,174 in July vs. 2,068 in July 2007, according to the Florida Association of Realtors.

It was only the second month since November 2005 that local housing activity improved year over year. Sales rose 1 percent in May.

If sales are showing signs of stability, prices haven't halted their slide. The median price of a single-family home dropped 18 percent, from $215,600 in July 2007 to $176,500 in July 2008.

National trends weren't all bad, either. Across the country, sales of existing homes rose 3.1 percent from June to July, about twice the rate economists expected.

"The process of a recovery has begun," said Joel Naroff of Naroff Economic Advisors. "It's not going to be short and swift, but it's begun nonetheless."

Desperate sellers, including banks stuck with repossessed property, did their part to lower overall home prices. Economists estimated foreclosures or distressed properties account for about a third of sales.

With thousands of homeowners continuing to default on mortgages, it's hard to predict when housing will return to normal growth, University of Florida economist David Denslow said. "The unusual thing is how many foreclosures there are compared to previous housing cycles," Denslow said.

Other Florida metro areas showing July-to-July sales gains include Fort Myers, Lakeland, West Palm Beach, Punta Gorda, Fort Lauderdale and Daytona Beach. Sales tumbled in Miami and North Florida metro areas like Gainesville and Pensacola.

James Thorner can be reached at thorner@sptimes.com or (813) 226-3313.