Happy Tuesday, May 29, 2018
I hope everyone had a wonderful Memorial Day weekend with friends and family. Also, I’d like to say thank you to all of those who gave their lives serving our country, as well as those of you who have served or are serving in the military now. Your sacrifices are greatly appreciated.
Today, we will take a step back and get a big-picture view of the Greater Tampa housing market — which includes all the communities listed below.
As you see below, Total Sold Dollar Volume, Closed Sales, Median Sold Price, Average Sold Price and Average Price per Sq Foot rose compared to April 2017 (YoY). Median Days on the Market and Average Days on the Market both fell 8.7% and 11.3 % respectively. On a month-to-month (MoM) basis (or March 2018 compared to Apri 2018), most statistics declined, except for Median Sold Price (up 1.1%) and Average Price Per Square Foot (up 1.5%).
(See table below for details).
The data in the chart above includes all types of housing, but let’s take a closer look at the sale of single-family homes. As you’ll see below, Closed Sales rose 7.8% compared to April 2017, as 2,428 SFHs sold. (Just place your cursor on the bars in the graph to see the stats.)
The Number of Active Listings also declined 4.0% from March a year ago, as 5,635 homes were listed for sale, but New Listings climbed 6.2% from April a year ago, as 3,223 homes came onto the market.
The April 2018 Median Price gained 7.6% over April of 2017, rising to $242,000. The Average Price per Sq Foot for Sold Homes rose 7% in April 2018 to $138/sq ft. The Median List Price also jumped 2.7% to $309,356 compared to April a year ago. The Average Price List Price per Sq Foot increased 4.4% to $165/sq ft.
Supply and Demand
The supply of homes dropped 7.9% from April 2017 to 2.37 months. The Median Days on the Market, which shows how fast homes are selling dropped 8.7% to 21 days. That means half of the homes in the Greater Tampa real estate market sell in 21 days or faster.
The main trend is also a simple one to understand. Prices are going higher because houses are selling faster. Supply is not keeping up with demand. This can create a challenging environment for buyers if you’re not prepared to act quickly when you find what you want. However, if you’re a seller or planning to sell soon the market is definitely in your favor. Motivated buyers want to buy now while interest rates remain relatively low. So don’t delay if you want to sell your house now is the time to do it.
Now here are some of the most helpful and interesting blog posts, articles, and infographics we’ve seen this week. Enjoy!
For over a quarter of a century, the Tampa Theatre has been holding a Summer Classics Movie Series. This year, the series will feature a sing-along, a silent film with live music, modern classics and post-show film talks with community film experts.
Jill Witecki with the Tampa Theatre said, “Tampa film fans know that when it comes to beloved classics, there is no more authentic experience than seeing them in the city’s majestic movie palace.” Witecki added, “For years, the community has flocked to Tampa Theatre on hot Sunday afternoons to enjoy Summer Classics as they were meant to be seen: on the big screen, surrounded by friends, with a bag of fresh popcorn and a cold drink in hand.”
From the Blog:
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Act now to get the most house for your hard-earned money.
Spring is usually the time of the year when people think of cleaning their homes and removing the clutter and cobwebs left over from the winter. For people who are considering making the leap to homeownership during the year, spring offers a good time to take a good look at their finances in anticipation of signing a contract for their dream home.
Here are some ideas designed to solidify the financial footing of potential homebuyers this spring.
Prospective home buyers these days are probably feeling pressure to lock in a deal quickly given skyrocketing home prices across most of the country. But those who wait a couple of years may be rewarded.
Real-estate website Zillow and research firm Pulsenomics surveyed more than 100 real-estate experts and economists — and roughly half of them predicted that the next recession will begin sometime in 2020, most likely in the first quarter. That’s actually later than the panel’s previous prediction of late 2019.
This prediction dovetails with a survey of economists carried out by The Wall Street Journal earlier this month. The economic growth that started in 2009 and is the second-longest in U.S. history will likely end in 2020, they said. “The current economic expansion is getting long in the tooth by historical standards, and more late-cycle signs are emerging,” according to Scott Anderson, chief economist at Bank of the West, and one of the economists predicting a 2020 recession. Some 59% of private-sector economists in the Journal’s survey forecast a 2020 recession.
Mortgage rates moved up over the past week to 4.66 percent, their highest level since May 5, 2011 (4.71 percent).
Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years. Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972.
At a time when housing inventory remains extremely low, it’s worth watching whether these higher borrowing costs lead some would-be sellers to stay put in their current home. Inventory shortages would likely worsen if more homeowners decide not to sell out of reluctance of having a new mortgage with a higher rate.
Thanks for reading Tampa Market Monday. If you want help buying or selling your home, please get in touch. We have sold over 5,000 homes in the Tampa area and our mission is “to elevate the practice of real estate to an art form — and to deliver a real estate experience that is re-imagined and extraordinary!
Have a Fantastic day!
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Thanks for taking time to read the Tampa Market Monthly! If you want to buy or sell a home or find out your home’s value please let us know. We’d love to work with you. You can reach me, Doug Bohannon or Dale Bohannon at 813-979-4963 or by completing this contact form. You can search all Tampa area homes for sale at www.teambohannon.com.
Have a Fantastic week!