Tampa Bay Real Estate Bubble Burst? Unlikely

With property prices seemingly on the rise and risingunspoiled beauty. And, if anything, this annual visitation is
quickly in Tampa, there is a lot of talk about a realset to increase again as the Super Bowl comes to
estate bubble in the US and dire predictions that theTampa in 2009. This will be the fourth Super Bowl to
so-called bubble could burst, leading to a lack ofbe held in Tampa. This has a dramatic effect on our
confidence on the part of investors and peoplearea's prosperity.
seeking a second home. But while this talk of a bubbleThe increasing economic prosperity also makes Florida
may be true in some parts of America, it isn't justifiedin general and Tampa Bay in particular a good place to
in Florida, particularly in the Tampa Bay and Clearwaterfind a job or start a business. In 2004, Florida was
areas.ranked #2 as one of the best places in America for
Florida as a whole is enjoying a rise in property pricesstart-ups. More and more companies are also
which promises to be a long term trend. There arerelocating their headquarters to Tampa, as well.
many reasons for this.Tampa is now being called the "Gateway to the
Demand for real estate in Florida is increasing. HomesFlorida High Tech Corridor", because companies are
are being bought for various reasons. Both Americanbeing offered a matching grant program that has
and European holiday makers view Florida as agenerated more than $120 million in applied research.
premier summer holiday location and flock there each225 companies have already taken advantage of this.
summer and historical evidence suggests that thisThe area has relatively low real estate prices and a
figure is rising sharply and is having a major economiclower cost of living and higher employment statistics
impact on the region according to VISIT FLORIDAcompared to the rest of Florida and to other states in
research.America, despite recent increases. The median value
Historic Visitor Numbers (in Millions)for a home in Florida was $189,500 last year,
Year Totalsignificantly less than similar homes in California where
1999 58.9the median home value was $474,370. (Source: ). In
2000 72.8Tampa Bay, it was less again.
2001 69.5Florida, including Tampa, also enjoys the advantage of
2002 73.9having slightly more favorable property taxes
2003 74.6compared with other parts of the US, no state income
2004 79.7tax and better car insurance rates. The education
Historic Economic Impactsystem has undergone considerable improvement
Total Tourism Spending 1999-2004:over the past number of years. And the Tampa area
1999 - $44.6 billionalso has some of the best commute to work times in
2000 - $48.5 billionthe country.
2001 - $48.6 billionTampa Bay is perhaps the ideal place not just for the
2002 - $49.5 billionbaby boomer buying a second house or holiday home,
2003 - $51.5 billionnor just for the property investor seeking to increase
2004 - $57.0 billiontheir footprint in the holiday rental market, but also for
Total State Sales Tax Revenues from Tourismpeople starting out in life or those seeking a retirement
1999-2004:home.
1999 - $2.7 billionThere have been several new developments in
2000 - $2.9 billionTampa Bay Florida real estate and Clearwater Beach
2001 - $2.9 billionreal estate holdings; the plans for developing
2002 - $3.0 billiondowntown Tampa, especially the Rivergate area, are
2003 - $3.0 billionpotentially very exciting indeed, according to recent
2004 - $3.4 billionarticles in the Tampa Bay Business Journal.
Number of Persons Directly Employed by TourismIn short, Florida as an area for either relocation,
Industry 1999-2004:investment or a second home is currently one of the
1999 - 826,200most attractive in America and likely to remain so for
2000 - 842,900some time. Due to the recent economic pressure on
2001 - 864,500the US as a whole there might be a slight slow down
2002 - 862,900in terms of escalating appreciation but Florida remains
2003 - 871,000a great place to come and a great place to invest,
2004 - 912,700especially Tampa Bay real estate and Clearwater Bay
This growth in visitors is due to Florida's manyreal estate, which are right in the heart of the potential
attractions, many of which are near to Tampa Bay.growth areas.
The superb beaches, the night life opportunities, golfNo bubbles bursting here, just opportunities galore!
and other sporting opportunities whether playing orBob Lipply is a licensed broker associate with Remax
being a spectator, the theme parks and adventureRealtec in Palm Harbor, Florida.
worlds, Disney, of course - and the many areas of