Happy Monday, December 23, 2019
I hope you all are having a wonderful holiday season and enjoy this week with family and friends.
Today let’s review what’s going on in the Greater Tampa housing market (includes the communities in the map below).
As you’ll see in the table that follows, all housing market metrics rose except for Median Days on the Market compared to November 2018. A month-over-month comparison shows that Total Sold Dollar Volume and Closed Sales fell, while Median Sold Price, Average Sold Price, Average Days on the Market and Average Price per Square Foot increased. Median Days on the Market stayed flat.
The data above accounts for all types of Greater Tampa housing, but let’s look more closely into the data for single-family homes. Closed Sales increased 2.3% compared to November 2018, as 2,538 SFHs sold. That was 33 more homes than in October 2019. (Just place your cursor on the trend line in the graph below to see the stats.)
The Number of Active Listings declined 11.8% from November 2018, as 5,988 homes were for sale (264 less than in October 2019). New Listings dropped 4.4% from November a year ago, as 2,457 homes came onto the market, 584 less than in October 2019.
The November 2019 Median Sale Price jumped 3.9% to $258,748 compared to November 2018. It was $8,748 higher than in October 2019. The Average Price per Sq Foot for Sold Homes rose 3.6% from November 2018 to $145/sq ft. The Median List Price increased 3.7% to $260,000 compared to November 2018. The Average List Price per Sq Foot climbed 5.5% to $172/sq ft compared to November 2018.
Supply and Demand
The supply of single-family homes dropped 14% from November 2018 to 2.36 months. In October 2019, the supply was 2.47 months. The Absorption Rate*, which shows the rate that homes sell during a given time period, rose 15.9% from November 2018 to 0.42. So the Greater Tampa single-family housing market continues to favor sellers.
*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%
Questions continue to rise around where home prices will head in 2020. The latest forecast from CoreLogic shows continued appreciation at 5.4% over the next year:
Additionally, ARCH Mortgage Insurance Company in their current Housing and Mortgage Market Review revealed their latest ARCH Risk Index, which estimates the probability of home prices being lower in two years. Based on the most recent results, 32 of the 50 U.S. states (plus D.C.) had a minimal probability of lowering by 2021.
Experts forecast home price appreciation to continue at a moderate rate as we move through 2020 and beyond. With appreciation growing, let’s get together and plan for your next move.
It’s exciting to put a house on the market and to think about making new memories in new spaces, but we can have deep sentimental attachments to the homes we’re leaving behind, too. Growing emotions can help or hinder a sale, depending on how we manage them.
When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes. Being mindful of these things and prepared for the process can help you avoid some of the most common mishaps when selling your house.
1. Overpricing Your Home
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask for when we price our homes. Believe it or not, that’s far from the truth. Don’t forget that the buyer’s bank will send an appraisal to determine the fair value for your home. The bank will not lend more than what the house is worth, so be mindful that you might need to renegotiate the price after the appraisal. A real estate professional will help you to set the true value of your home.
2. Letting Your Emotions Interfere with the Sale
Today, most homeowners have been living in their houses for an average of 10 years (as shown in the graph below):This is several years longer than what used to be the norm, since many homeowners have been recouping from negative equity situations over the past 10 years. The side effect, however, is when you live for so long in one place, you may get even more emotionally attached to your space. If it’s the first home you bought after you got married or the house where your children grew up, it very likely means something extra special to you. Every room has memories and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate, separating the emotional value of the home from the fair market price. That’s why you need a real estate professional to help you with the negotiations in the process.
3. Not Staging Your Home
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own personalized homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your home with the buyer in mind. Buyers want to envision themselves in the space, so it truly feels like their own. They need to see themselves in the space with their furniture and keepsakes – not your pictures and decorations. Stage and declutter your home so they can visualize their own dreams as they walk through your house. A real estate professional can help you with tips to get your home ready to stage and sell.
Today’s seller’s market might be your best chance to make a move. If you’re considering selling your house, let’s get together to help you navigate through the process while avoiding common seller mistakes.
December 19, 2019
The economy continued to pick up momentum with a solid increase in residential construction, improvement in industrial output in our nation’s factories and a rise in job openings. While the economy is in a sweet spot, improvements in housing market sales volumes will be modest heading into next year simply due to the lack of available inventory. The demand is clearly not being met for entry-level Millennials and trade-up Generation X home buyers. If there was more inventory of unsold homes for buyers to choose from, home sales would be rising at a faster 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!