Like many cities in the Sunshine State, Tampa has been hit hard by the recession in the United States as the Tampa real estate market has fallen, with home values plunging and foreclosures skyrocketing. The market may have been overheated before, spurred on by speculation, which has contributed to its fall in prices.

However, all is not bleak. The market for real estate in Tampa seems to be on the rebound as of late. According to the Greater Tampa Association of Realtors, there were 1,131 homes sold in October, up from just 876 the year before, many likely spurred on by the government stimulus-rebate program for home buyers. Condo sales volume was up too, as were villa and townhome sales.

However, prices are still lagging on homes for sale in Tampa. The average sales price of a residential home sold in October was $170,932, down from $205,410 in 2008. Condo prices were down by around $34,000, townhomes were down by around $36,000 and villas were down by $38,000 — great news for buyers but not so good for sellers.

And the St. Petersburg Times reported that sales in the Tampa area in November were up by more than 50% in the month of November, as compared with the previous year’s figures. Mortgage default rates were still high, with October giving the Tampa-St. Petersburg-Clearwater area a 15% 90-day-plus delinquency rate, the highest of 2009, and a 9% foreclosure rate — also the highest of the year. As these homes are returned to the banks, the inventory available will continue to build up.