Inventory Rises, Housing Starts Decline, Home Mortgage Applications Scarce in Tampa Bay, State

Florida may be leading the nation in both new job creation and unemployment, but that hasn’t stalled a drop in new housing starts for the third quarter across the Sunshine State.

Demand for home mortgages has fallen to its lowest levels since 1991, fueled mostly by the exit of many speculators in the market, Tony Polito, director of Metrostudy’s Tampa division, said.

Tampa Bay had 4,228 single-family starts during the third quarter, a 33.2 percent drop compared to last year’s 6,332 units.

Single-family quarterly closings stood at 4,334 units for the third quarter, down 16.2 percent over last year’s 5,169 units. However, closings for the year are still up 5 percent at 19,366 units, compared to 18,438 posted through the third quarter in 2005. Polito pointed out, however, that Metrostudy’s closing figures are based on actual move-ins, rather than speculative purchases.

The overall Florida housing picture: Overall housing inventory increased 3 percent compared to last year. Properties are remaining unsold for a longer period of time, as buyers wait out rate increases and hope to time their home loan applications perfectly.

Finished vacant inventory has exploded, however, jumping 137.6 percent to 3,970 units, compared to 1,671 units the quarter before. Construction inventory fell by 1,929 units because builders are hesitant to begin work if no one is looking to buy.

In Sarasota and Bradenton, builders started 1,739 single-family units in the third quarter, down 26.8 percent compared to 2005’s 2,377 units. For the year, starts are down 12.7 percent to 8,158 units.

Total housing inventory is up 10.1 percent compared to 2005 with 8,489 units representing a 13.4-month supply. Finished vacant inventory increased 155.5 percent to 3,280 units for the year. Inventory under construction fell by 1,273 units to 4,868.