I hope everyone has a wonderful Thanksgiving this week and if you’re traveling stay safe.
This week let’s look at how the Greater Tampa real estate market as a whole performed in October. (Below is a map of the areas that make up the Greater Tampa area.)
How Many Homes Sold? How Many Homes Are For Sale?
As expected the number of Single-Family Homes Sold was back up after a weather-related drop in September. In October, 2,217 homes sold, an 8.8% increase compared to October of 2016. However, the number of Homes for Sale in October 2017 decreased 3.5% compared to October of last year, as only 5,717 homes were for sale.
Months of Supply has fallen too. In October of 2017, inventory stood a 2.43 months, a decline of 12.2% from October 2016. So if homes continue to sell at the current pace, it should take 2.43 months to deplete the supply of homes. Housing inventory has held below 3 months all year long.
How Much Does a Home Cost?
The Median Sold Price, which shows the price at or above which half of the homes sold, stood at $227,000 or 4.5% more than October a year ago. But this was $9,500 or 4.5% less than in September of 2017. The Median List Price, which indicates the price at which half of the homes for sale are listed at or above, hit $230,000 a 4.5% climb from October of 2016.
The Sales Price to Original List Price was 96%, a tick down (0.3%) from it’s level in October 2016. This indicator has ranged between 96.5% and 95.8% all year. The Average Sales Price Per Square Foot stood at $132, a rise of 6.5% compared to October of 2016.
(MEDIAN SOLD PRICE – Median means “in the middle,” meaning that half of the homes sold above the Median Sold Price and half sold below it. For example, if 5 homes sold in a zip code for $200,000, $250,000, $300,000, $400,000 and $800,000, the Median Price would be the one in the middle. In this case, that would be the $300,000 home. In contrast, average selling price would just be the sum of the selling prices of the 5 homes divided by 5, or $330,000. Many real estate statisticians prefer median price as a better indicator of the “typical” price within an area or zip code. Why? “Outliers” or homes sold at an extremely high or low price — like the $800,000 home in our example — do not affect it as much.)
How Fast Are Homes Selling?
The Average Number of Days a home stayed on the market fell to 45 days, a 25% drop compared to October 2016. By reviewing the Median Days a home stayed on the market, we can see how fast at least half of the homes on the market sold. In this case, half of the sold homes, sold in 24 days or less, which is 35.1% faster than in October of last year.
This is the time of year when home sales begin to drop off, but the low housing supply across the area still means sellers can expect strong demand and faster than normal sales during the so called “offseason.” Also, with mortgage rates creeping back up buyers should have extra motivation to buy now instead of waiting until next year.
(Want a customized evaluation of your home and neighborhood, based on comparable homes that have sold recently? Call Annette Bohannon at 813-431-2840 and get a FREE detailed, market evaluation of your home.)
Now here’s an overview of some of the most helpful and interesting blog posts, articles, and infographics we’ve read this week. Enjoy!
Tampa offers first demo of its connected vehicle technology project, launching with 1,600 cars in 2018
Tampa’s goal to become a smart city was on display on Monday, as the Tampa Hillsborough Expressway Authority hosted the first public demonstration of a connected vehicle technology research project that will launch into pilot testing in 2018. The project involves outfitting a fleet of 1,600 privately owned vehicles with technology that will communicate with roadways and other cars in order to receive various warnings and alerts about roadway conditions, speed limit changes, dangers and more.
Every year at this time, many homeowners decide to wait until after the holidays to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays.
Here are seven great reasons not to wait:
- Relocation buyers are out there. Many companies are still hiring throughout the holidays and need their employees in their new positions 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 the times you want it shown. You will remain in control.
- Homes show better when decorated for the holidays.
- There is less competition for you as a seller right now. Let’s take a look at listing inventory as compared to the same time last year:
Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters.
This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 3.5%. However, we must realize that current rates are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last several decades:
The thought of buying your first home can be exciting. But the reality is that times can be tough for first-time homebuyers. Socking away enough for a down payment is tricky. And finding a home that fits your finances isn’t easy, either.
Yes, it’s still a strong seller’s market. But that doesn’t mean buyers can’t find signs of hope. In fact, fresh data suggests a more positive outlook than many would have you believe.
Don’t give up your dream of owning your first home. Be inspired by the optimism of other first-time buyers. And be proactive by doing your homework early in the process.
As anniversaries go, it’s a nerve-racking but inescapable one: It’s been 10 long years since the widespread real estate crash that precipitated the Great Recession, and all the misery that followed in its wake. So it seems like the perfect time to take a giant step back, peruse and analyze all of the data, and assess what has really happened to the American housing market in the decade since.
So where are we, really?
Thanks for reading Tampa Market Monday. We’d love to help you buy or sell your home, so please get in touch! You can reach me, Doug Bohannon or Dale Bohannon at 813-979-4963 or by completing this contact form.
Have a Fantastic week!
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