During the first two weeks of October, I’ve reviewed the housing market in two popular locales, New Tampa and Wesley Chapel, but this week I want to take a step back and take a broader view. So we’ll look at the whole of the Greater Tampa real estate market and see how it fared during the month of September. Below is a map of the areas that make up the Greater Tampa area.
How Many Homes Sold? How Many Homes Are For Sale?
Now the first thing that stands out to me is that Irma had a big impact on the number of houses sold. I would expect some seasonal drop off moving from Summer to Fall, but not as big of a decline in sales as we saw.
The Number of Single-Family Homes Sold in Greater Tampa declined 17.1% compared to September 2016. With the strong sales numbers we’ve seen this year, I wouldn’t pay too much attention to the drop. Only 1,947 home sold, which was 809 fewer than in August of 2017. My advice is to wait and see what happens in October, as the numbers should bump back up and even be higher than normal. Why? Some of the sales that would have happened in September should now take place in October.
There were 5,967 Homes for Sale during September 2017, just 0.5% less than the previous September. By comparing homes sold and homes for sale, we discover that there are 2.56 Months of Supply. This means if homes continue to sell at the same rate they have all year, it should take about 2 1/2 months to exhaust the supply of homes currently for sale. As you can see on the graph below. Supply has held fairly steady under 3 months during 2017.
How Much Does a Home Cost?
The Median Sold Price, which indicates the price at or above which half of the homes sold, stood at $236,500 or 7.5% higher than September of 2016. The Median List Price, which shows the price at which half of the homes for sale are listed at or above, was $293,900, a 3.1% rise from September 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 dropped 12.3% compared to September 2016. At 50 days, it also jumped 5 days compared to August 2017. Again, some of this was weather-related as fewer homes sold than usual and this impacts the average day a home stays for sale. By looking at the Median Days a home stayed on the market, we can determine how fast at least half of the homes on the market sold. In this case, half of the homes that sold, sold in 23 days or less, which means that homes sold 32.4% faster than in September a year ago. This was one day faster than in August of 2016.
All these trends together point to a few clear takeaways.
- Irma put a damper on sales, but sales should be higher than expected in October. This is due to the fact that some of the sales that were curtailed because of the weather will happen in October.
- Housing Supply across the Tampa area is tight, which means it is still a great time to sell your home. There are more buyers than sellers.
- High demand and low supply means homes will sell faster than normal. Again, keep in mind, half the homes sold in 23 days or less, and on average, homes are selling in 50 days.
(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!
- Busch Gardens offering free admission to first responders
- First responders can also purchase discount tickets
- Offer valid Oct. 11 through Nov. 24
In a CNBC article, self-made millionaire David Bach explained that “the single biggest mistake millennials are making” is not purchasing a home because buying real estate is “an escalator to wealth.”
Bach went on to explain:
“If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter.”
In his bestselling book, “The Automatic Millionaire,” Bach does the math:
“As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!”
Renters think the housing market is finally loosening up, fueling a sudden optimism among homebuyers
- Recently, too few homes have been for sale, leading to high prices and fierce competition among buyers.
- Yet there has been a sudden burst of optimism among potential homebuyers in a monthly sentiment survey from Fannie Mae.
- Housing confidence rose in September to match the all-time high set in June.
Halloween isn’t just an opportunity to gorge on all things frightful or filled with sugar. It’s also a chance for home sellers to scare up a buyer!
Because these days, home sellers need as much marketing creativity as they can muster up. Now that the summer home-selling fever has died down, people are beginning to hunker down for the holidays. In fact, statistics show that home sales don’t pick back up again until spring. But if you have a home on the market, you don’t want to wait months and months to make the sale, right?
That’s where Halloween comes in: Every year, more than 41 million kids in the U.S. head out trick-or-treating on this holiday, trekking from door to door—many with parents in tow. In other words, Halloween is the one day of the year when you could have dozens of people visiting your house, no effort required!
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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