Happy Monday April 26, 2021!
Today, we’ll review how the Greater Tampa housing market performed in March 2021.
As you’ll see in the table that follows, all metrics except for Average and Median Days on the Market rose compared to March 2020 and February 2021.
In March 2021, 4,021 homes sold. So closed sales climbed 48% compared to March 2020. That was 36% more homes than sold in February 2021. The Number of Active Listings fell to 2,093 homes, a 71.5% drop from March 2020. That was 414 homes than were listed for sale in February 2021. The Number of New Listings decreased 1.3% compared to March 2020 as 4,040 new listings came onto the housing market. That was 674 more than in February 2021.
The March 2021 Median Sale Price rose 15.3% to $280,000 compared to March 2020. It was $5000 higher than in February 2021. The Median List Price increased 14.3% from March 2020 to $285,818. It increased $3,513 more than in February 2021. The Average Price per Sq Foot for Sold Homes jumped 20% from March 2020 to $180/sq ft. The Average Price per Sq Foot for Sold Homes ticked up $9/sq ft from February 2021.
Supply and Demand
Currently, the Greater Tampa single-family housing market favors sellers.
Months of Supply
The supply of single-family homes dropped 73.2% from March 2020 to 0.60 months.
Absorption Rate based on Closed Sales
*Absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. For example, if there are 100 homes listed for sale in a certain area, and 20 sold during the last month, the absorption rate is 20/100 = .20 or 20%.
*Buyer’s market: 16.67% and below
Seller’s market: 33.33% and above
Neutral market: 16.67% – 33.33%.
The Absorption Rate*, which shows the rate that homes sell during a given time period, jumped 327.5% from March 2020 to 1.92.
6 Key Trends Expected To Shape Real Estate in 2021
2021, like 2020 before it, is shaping up to be an unusual year for the real estate market, but there are many reasons to be hopeful. With so much happening in the world and continued effects from the world’s response to COVID-19, there are forces pushing and pulling on sellers and buyers that make them choose differently than they did in 2019 and before that. However, if you speak with the best of the real estate agents in the United States, many of them will agree with the results of HomeLight’s Agent Survey from Q4 2020. In this survey, they discuss some key trends that are going to have an outsized impact on 2021’s market.
Not Enough Houses to Go Around, For a While
There have been inventory shortages in a ton of markets in the past year, and this kind of shortage doesn’t go away immediately, even when a new year and even a new political climate are introduced. Rather, consumers have to slowly boost their confidence that there are indeed good reasons to sell at this time, or buyer demand has to cool off. Both of these things can happen, perhaps by the middle or end of 2021, but for now, the hot sellers’ market, where many homes are selling as-is with multiple offers, due to large shortages in inventory is likely to continue.
Competitive Interest Rates Keep People Shopping
Part of why buyers are so eager to get into the market now is that the interest rates continue to be incredibly low, making people who might otherwise wait around and shop for a while look to lock in a great rate with a better house than they could otherwise afford. Paying less in interest makes it possible to shop for a home with a slightly higher price tag for the same monthly payment, which is drawing many buyers in.
Foreclosure Question Marks As Forbearance Continues or Ends
Of course, as mortgage payment forbearance continues, one factor that many believe could change in 2021 is the presence or absence of foreclosures. While many people have used the time of forbearance to get back on their feet, there are likely to be more foreclosures than average when they are possible again, since some folks have unfortunately not been able to catch back up on their needed payments.
New Market Needs With First-Time Buyers Entering in Droves
It’s likely that the Biden administration will make good on their goal of increasing affordable housing in the United States, and if they do this in the form of a tax credit for first-time homebuyers, the market could be flooded with more folks looking to take advantage of that benefit, buying a home earlier in life than they would otherwise feel comfortable doing.
Shifts Out of HCOL Areas With Persisting Remote Work Options
Expensive small apartments in the big city lost some of their luster when people began working remotely from home in 2020, with the bigger house in the suburbs or other lower cost of living areas drawing many city workers away. While some industries will have the opportunity to return to their workplaces this year, some are likely to give permanent work-from-home privileges to those who were able to work effectively this past year, and this could motivate more folks to move to a place where they can get more house and yard for their money.
Far Less Market Volatility With Decisive Approach to the Virus
Lastly, the kinds of market panics that frightened investors in 2020 are much less likely during 2021 because of the ways that the country has learned to deal with the virus and how most industries have found a pivot or an adjustment in order to continue their work. While some businesses are still struggling, we can expect far fewer big shocks in the coming year, and this should hopefully offer more confidence to sellers and buyers alike in the real estate market.
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!
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