Happy Monday, December 31, 2018
I hope you have a great time ringing in 2019.
In today’s Market Monday, let’s see how the entire Greater Tampa housing market fared in November 2018. All the communities covered are shown in the map below.
As you see below, all metrics except for Average Days on the Market rose compared to November 2017. Average Days on the Market stayed flat at 53 days. All the real estate measures but Closed Sales also climbed on a month-to-month basis. Sales fell 1.2% compared to October 2018.
The data in the chart above covers all types of housing, but let’s take a closer look at the sale of single-family homes. Closed Sales increased 8.8% compared to November 2017, as 2,481 SFHs sold. That was 8 fewer homes than in October 2018. (Just place your cursor on the trend line in the graph below to see the stats.)
The Number of Active Listings jumped 21.5% from November 2017, as 6,785 homes were for sale (26 more than in October 2018). New Listings increased 8.2% from November a year ago, as 2,569 homes came onto the market, 612 less than in November 2018.
The November 2018 Median Sale Price increased 4.1% from November of 2017, rising to $249,000. This was $8,000 higher than in October 2018. The Average Price per Sq Foot for Sold Homes rose 6.1% in November 2018 to $141/sq ft. The Median List Price climbed 4.4%, increasing to $250,635 compared to November 2017. In October 2018, it stood at $246,990. The Average Price List Price per Sq Foot ticked up 1.2% to $163/sq ft compared to November of last year.
Supply and Demand
The supply of single-family homes jumped by 16% from November 2017 to 2.75 months. In October 2018, the supply was slightly higher (2.76 months). The Absorption Rate*, which shows the rate that homes sell during a given time period, fell 10.4% from November 2017 to 0.37 . This indicates the market still favors 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%
Now I’d like to share some of the most helpful and interesting blog posts, articles, and infographics we’ve come across. Enjoy!
New Year’s Eve: It’s time to ring in 2019 tonight and Tampa Bay is teeming with ways to celebrate. First Night St Petersburg is a family-oriented celebration of the arts that includes music, art and entertainment at more than 10 venues around downtown. It’s free to wander around, but you need a button to participate in activities and enter venues ($12-$15, $5-$10 ages 6-12, 5 and younger free). Find them at firstnightstpete.com. In Tampa, TV personality Mario Lopez hosts the Pied Piper’s New Year’s Eve Party at the Godfrey Hotel, with tunes by DJs Magic Mike and LeSage. The party will have its own fireworks display over the bay at midnight ($29-$59; $155 VIP).piedpiperproductions.com.
2019 Outback Bowl: The Iowa Hawkeyes and Mississippi State Bulldogs square off at Tampa’s Raymond James Stadium on Tuesday, in the 31st bowl game between the Big Ten Conference and the Southeastern Conference. $80 and up. raymondjamesstadium.com.
Epiphany: The celebration of the baptism of Christ brings more than 20,000 people to Tarpon Springs Bayou on Sunday, where teenage boys will dive to find the sunken Holy Cross, which earns a year of good luck. A procession of children in traditional costumes, choir members and Greek folk dancers accompany the boys. St. Nicholas Greek Orthodox Cathedral, 36 N Pinellas Ave. Free. (727) 937-3540.
Music: Friday, Can’t You See Southern rockers the Marshall Tucker Band at Clearwater’s Capitol Theatre, where they return after their sold-out performance in 2017 ($45-$75). Also Friday, musician David Lowery plays double duty with both of the alt-rock bands he founded, Crackerand Camper Van Beethoven at Skipper’s Smokehouse in Tampa ($22). Saturday, Victor Wainwright will tickle the ivories with his band the Train at the Palladium Theater in St. Petersburg ($19-$25).
Ron White: The cigar-smoking, scotch-drinking funnyman performs two shows at Clearwater’s Ruth Eckerd Hall on Friday ($49-$59).rutheckerdhall.com.
The Florida Orchestra: Gershwin’s Rhapsody in Blue: The legendary composition comes to life with Cuban jazz pianist Aldo López-Gavilán, conducted by Thomas Wilkins, Friday at Tampa’s Straz Center, Saturday at St. Pete’s Mahaffey Theater and Sunday at Ruth Eckerd Hall ($18-$48). floridaorchestra.org.
Kids and Family
Swan Lake: The Ukraine’s National Ballet Theatre of Odessa brings a full scale full-scale production of Tchaikovsky’s classic ballet to the Mahaffey Theater on Sunday ($46.80-$74). themahaffey.com.
From the Blog:
In today’s market, as home prices rise and a lack of inventory continues, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for most sellers.
Here are the top five reasons:
1. Exposure to Prospective Buyers
According to NAR’s 2018 Profile of Home Buyers and Sellers, 95% of buyers searched online for a home last year. That is in comparison to only 13% of buyers looking at print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home, do you?
2. Results Come from the Internet
Where did buyers find the homes they actually purchased?
- 50% on the Internet
- 28% from a real estate agent
- 7% from a yard sign
- 1% from newspapers
The days of selling your house by putting out a lawn sign or putting an ad in the paper are long gone. Having a strong Internet strategy is crucial.
3. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:
- The buyer who wants the best deal possible
- The buyer’s agent who solely represents the best interests of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies, which work for the buyer and will almost always find some problems with the house
- The appraiser if there is a question of value
4. FSBOing Has Become More And More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 7% over the last 20+ years.
5. You Net More Money When Using an Agent
Many homeowners believe that they can save on the real estate commission by selling on their own, but they don’t realize that the main reason buyers look at FSBOs is because they also believe that they can save on the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is that,
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.
Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?
Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.
The housing markets in many areas of the country are softening, but that doesn’t mean we need to freak out about every negative headline in the press. Artificially low mortgage rates coupled with inventory gluts and a sustainable economy have caused home prices to skyrocket in many parts of the country, and it was really only a matter of time before the market pendulum needed to swing back to a more normalized state. According to one recent analysis, sales of existing homes are down 9.3% from one year ago and housing starts are down 8.7% from November of last year.
But just because certain metrics are down does not mean the market is on the verge of bursting. I would argue that down markets present some of the best value opportunities for homebuyers — if you do your homework.
So you’ve finally decided to put your home on the market. You’ve planned your first open house, begun searching for new digs, and even made a mental packing list. Now all you have to do is sit back and wait for the offers to roll in, right?
Well, sellers, we don’t mean to freak you out, but we’ve got bad news: You just might be sabotaging your home sale. Obviously, that’s the last thing you’d want to do, but one wrong turn—or wrong decision—could hurt your chances of landing a buyer. And the most unsettling part? You probably have no idea you’re doing anything wrong.
Below are some of the ways you may be turning off buyers without even knowing it.
December 27, 2018
Rates continued their two-month slide and are currently hovering around the same level as the early summer, which was before the deterioration in home sales. The negative headlines around the financial markets are concerning but the economy remains healthy, so the drop in mortgage rates should stem or even reverse the slide in home sales that occurred during the second half of 2018.
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!