Happy Monday, June 24, 2019
In today’s Market Monday, I’ll review the housing market for all of Greater Tampa. It includes all the communities in the map below.
Below is a map of all the communities that make up the Greater Tampa housing market.
As you’ll see in the table that follows, all measures of the Greater Tampa real estate market rose compared to May 2018. A month-over-month comparison showed that all statistics but Median and Average Days on the Market climbed higher. So prices increased and homes sold faster than in April 2019, but slower than in May 2018.
The data above covers all types of Greater Tampa housing, but let’s take a deeper look at single-family homes. Closed Sales increased 7.5% compared to May 2018, as 3,119 SFHs sold. That was 437 more than in April 2019. (Just place your cursor on the trend line in the graph below to see the stats.)
The Number of Active Listings jumped 6% from April 2018, as 6,244 homes were for sale (144 more than in April 2019). New Listings ticked up 0.6% from May a year ago, as 3,465 homes came onto the market, 250 more than in April 2019.
The May 2019 Median Sale Price rose 1.8% from May 2018, increasing to $252,500. This was $11,955 higher than in April 2019. The Average Price per Sq Foot for Sold Homes rose 2.9% from May 2018 to $143/sq ft. The Median List Price increased to $254,990, 2% higher than May 2018. In April 2019, it stood at $245,000. The Average List Price per Sq Foot increased 2.4% to $168/sq ft compared to May 2018.
Supply and Demand
The supply of single-family homes climbed by 2% from May 2018 to 2.52 months. In April 2019, the supply was slightly lower (2.49 months). The Absorption Rate*, which shows the rate that homes sell during a given time period, climbed 1.4% from May 2018 to 0.50. This means 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%
TAMPA, Fla. (WFLA) – Today S&P Dow Jones Indices released the latest report for the S&P CoreLogic Case-Shiller Indices, measuring trends of home prices across the country.
Data released today for March 2019 shows that, overall, the rate of home price increases across the U.S. has continued to slow, but Tampa Bay is still seeing some of the largest percentage increase in residential real estate prices.s
Tampa, Las Vegas, and Phoenix reported the highest year-over-year gains among the 20 cities surveyed.
Last March, Las Vegas had the highest home prices with an 8.2 percent year-over-year price increase, followed by Phoenix with a 6.1 percent increase, and Tampa with a 5.3 percent increase.
Four of the 20 cities reported larger price increases in March 2019 versus February 2019.reported the highest year-over-year gains among the 20 cities.
The 20-City Composite also dropped from 6.7 percent to 2.7 percent annual gains over the last year as well.
According to the report, existing single-family home sales are flat. Since 2017, peak sales were in February 2018 at 5.1 million at annual rates, while the weakest were 4.36 million in January of 2019.
“The difficulty facing housing may be too-high price increases. At the currently lower pace of home price increases, prices are rising almost twice as fast as inflation,” said managing director and chairman of the index committee at S&P Dow Jones Indices, David M. Blitzer said in a statement. “In the last 12 months, the S&P Corelogic Case-Shiller National Index is up 3.7 percent, double the 1.9 percent inflation rate. Measured in real, inflation-adjusted terms, home prices today are rising at a 1.8 percent annual rate. This compares to a 1.2 percent real annual price increases in housing since 1975.”
Cities with the biggest increases in home prices
Take a look at some of the cities across the country with the biggest increases in residential real estate prices over the last few months.
Source: S&P Dow Jones Indices and CoreLogic Data through March 2019
From Our Blog:
In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
- Capacity: Your current and future ability to make your payments
- Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
- Collateral: The home, or type of home, that you would like to purchase
- Credit: Your history of paying bills and other debts on time
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.
Many potential homebuyers overestimate the down payment and credit scores necessary to qualify for a mortgage. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so today.
June 20, 2019
While the continued drop in mortgage rates has paused, homebuyer demand has not. This is evident in increased purchase activity and loan amounts, indicating that homebuyers still have the willingness and capacity to purchase homes. Today’s low rates, strong job market, solid wage growth and consumer confidence are typically important drivers of home sales.
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!