Throughout the month of January, I’ve been reviewing the performance of Tampa real estate in 2017 compared to 2016. This week I’ll look at how the Greater Tampa housing market as a whole fared in 2017. (Below is a map of the areas that make up the Greater Tampa area.)
Now first, let’s see how December went compared to December of 2016. Here’s a quick snapshot.
If we take a step back and look and the whole of 2017, 35,805 homes sold compared to 33,244 in 2016. That gain of 2,561 sales shows a 7.7% jump in the number of home sold for 2017. The chart below shows how the sales were divided on a quarterly basis. (Click on the quarterly bar graph for a detailed breakdown of each quarter.)
From Q1 of 2016 until the end of Q4 2017, the Median Sold Price of homes has gone from $180,500 to $222,000. This rise of $41,500 is a 22.9% jump. Keep in mind, the Median Price (or the middle price) reveals the price at which half of the homes sold above and below. The Average Sold Price Per Square Foot also rose from $114/sqft (Q1-2016) to $132/sqft (Q4-2017). That’s a 15.7% leap. During that same time period, the Median List Price climbed from $265,000 to $277,655, a 4.8% increase. The Average Listing Price went from $148 in Q1 2016 to $159 in Q$ 2017 on a square foot basis, an upturn of 7.4%.
Supply and Demand
As you can see below, the supply of homes has steadily declined over the last two years. In Q1 of 2016, 2.79 Months of Supply were available. In Q4 of 2017, the supply had dwindled to 2.31 months. Why is this 17.2% decrease important? It shows that if homes continue selling at their current pace, the supply will only last for 2.31 months. This also indicates that the Greater Tampa market is a Seller’s Market, meaning the home sellers have the upper hand. (Any number of months below 5 months is considered a Seller’s Market.) Average Days on the Market shows us how fast homes in the area are selling. In Q4 of 2017, it took 50 days for homes to sell on average, a 26.4 percent drop from Q1 of 2016, when homes were changing hands every 68 days on average.
(Want a customized evaluation of your home and neighborhood, based on comparable homes that have sold recently? Call Annette Bohannon at 813-431-2840 or go here and get a FREE detailed, market evaluation for your home.)
Now here are some of the most helpful and interesting blog posts, articles, and infographics we’ve seen this week. Enjoy!
From the Blog:
Every month, CoreLogic releases its Home Price Insights Report. In that report, they forecast where they believe residential real estate prices will be in twelve months.
Below is a map, broken down by state, reflecting how home values are forecasted to change by the end of 2018 using data from the most recent report.
As we can see, CoreLogic projects an increase in home values in 49 of 50 states, and Washington, DC (there was insufficient data for HI). Nationwide, they see home prices increasing by 4.2%.
How might the new tax code impact these numbers?
Recently, the National Association of Realtors (NAR) conducted their own analysis to determine the impact the new tax code may have on home values. NAR’s analysis:
“…estimated how home prices will change in the upcoming year for each state, considering the impact of the new tax law and the momentum of jobs and housing inventory.”
Here is a map based on NAR’s analysis:
According to ATTOM Data Solutions’ 2018 Rental Affordability Report, “buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 [or 54% of] U.S. counties analyzed for the report.”
For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).
What is “APR”? The annual percentage rate, or APR, is how much you’ll pay in interest and other fees when you get a mortgage to buy a home.
The “and other fees” clause is key here. When people get a mortgage, they often obsess over the interest rate alone—say, that 5% extra you’ll pay over the life of your loan on that $300,000 you’re borrowing. But that’s not where your expenses end, and that’s where APR comes into play.
“The APR includes the interest rate and other charges, which is why it’s usually higher than just your interest rate,” says Michele Lerner, author of “Home Buying: Tough Times, First Time, Any Time.”
As 2018 dawns, there’s no question the real estate market is, well, a little crazy. Home values are surging, money is relatively cheap, and inventory is tighter than tight.
That’s all downright welcome news for owners who’ve been considering remodeling.
“Remodeling remains a very attractive option to increase your home’s value,” says Javier Vivas, director of economic research for realtor.com®. And that can be a smart move whether you’re prepping your place for sale, or giving it a refresh for the long haul.
Thanks for reading Tampa Market Monday. If you want help buying or selling your home, please get in touch. We have sold over 4,600 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!
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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!