Happy Monday, November 25, 2019
I just wanted to start by wishing you all a Happy Thanksgiving this week. Hope you have a great time with family and friends.
Now 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 compared to October of 2018. A month-over-month comparison shows that Total Sold Dollar Volume, Average Sold Price and Median days on the market increased, while Average Days on the Market fell compared to September 2019. Closed Sales, Median Sold Price and Average Price per Square Foot held steady.
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 0.6% compared to October 2018, as 2,505 SFHs sold. That was 6 fewer homes than in September 2019. (Just place your cursor on the trend line in the graph below to see the stats.)
The Number of Active Listings declined 7.5% from October 2018, as 6,252 homes were for sale (25 less than in September 2019). New Listings dropped 4.4% from October a year ago, as 3,041 homes came onto the market, 225 less than in September 2019.
The October 2019 Median Sale Price jumped 3.7% to $250,000 compared to October 2018. It was $2,590 lower than in September 2019. The Average Price per Sq Foot for Sold Homes rose 5% from October 2018 to $146/sq ft. The Median List Price increased 2.3% to $252,740 compared to October 2018. In September 2019, it stood at $257,500. The Average List Price per Sq Foot climbed 5.5% to $172/sq ft compared to October 2018.
Supply and Demand
The supply of single-family homes dropped 10.3% from October 2018 to 2.47 months. In September 2019, the supply was 2.48 months. The Absorption Rate*, which shows the rate that homes sell during a given time period, rose 8.8% from October 2018 to 0.40. 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%
From Our Blog:
Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning real estate:
1. Real estate diversifies your income
“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”
The article highlights how having multiple sources of income, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.
2. Real estate produces near-immediate results
“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”
Currently, home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, real estate today is definitely driving immediate results!
3. Passive income can help you become financially independent sooner
“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.
While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”
Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.
If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, let’s get together to discuss the process.
Who is Brent Sutherland?
Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.
Around this time each year, many homeowners decide to wait until after the holidays to list their houses. Similarly, others who already have their homes on the market remove their listings until the spring. Let’s unpack the top reasons why listing your house now or keeping it on the market this winter may be the best choice you can make.
Here are seven great reasons not to wait:
- Relocation buyers are out there now. Many companies are still hiring throughout the holidays, and they need their new employees to start as soon as possible.
- Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now.
- You can restrict the showings on your home to days and times that are most convenient for you. You will remain in control.
- Homes show better when decorated for the holidays.
- There is minimal competition for you as a seller right now. Over the past few months we’ve seen the supply of homes for sale decreasing year-over-year, as shown in the graph below:
- The desire to own a home doesn’t stop during the holidays. Buyers who were unable to find their dream homes during the busy spring and summer months are still searching, and your home may be the answer.
- Late fall and early winter make up the “sweet spot” for sellers. The supply of listings increases substantially after the holidays. Also, in many parts of the country, new construction will continue to surge and reach new heights in 2020, which will lessen the demand for your house next year.
It may make the most sense to list your home this holiday season. Let’s get together to determine if selling now is your best move.
November 21, 2019
The housing market continues to steadily gain momentum with rising homebuyer demand and increased construction due to the strong job market, ebullient market sentiment and low mortgage rates. Residential real estate accounts for one-sixth of the economy, and the improving real estate market will support economic growth heading into next year.
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!