Happy Monday, February 25, 2019
In today’s Market Monday, let’s review the performance of the entire Greater Tampa housing market fo January 2019. All the areas covered are shown in the map below.
As you’ll see in the table below, Total Sold Dollar Volume and Closed Sales fell, while all the Price metrics (Median Sold, Average Sold, Average Price Per Square Foot) rose compared to January 2018.
Average Days on the Market stayed flat at 33 days, but the Median Days on the Market climbed 32% to 33 days compared to January a year ago. Remember Median Days on the Market shows us how fast half of the homes on the market sold.
Compared to December 2018, all price metrics and the number of sold homes dropped, while the Median and Average Days on the Market increased. So compared to a year ago prices were up, even though units sales were down. In the near-term, both prices and homes sold were lower than last month.
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 0.8% compared to January 2018, as 1,585 SFHs sold. That was 486 fewer homes than in December 2018. (Just place your cursor on the trend line in the graph below to see the stats.)
The Number of Active Listings jumped 21.3% from January 2018, as 6,707 homes were for sale (166 more than in January 2018). New Listings increased 2.4% from December a year ago, as 2,941 homes came onto the market, 985 more than in January 2018.
The January 2019 Median Sale Price fell 2.2% from January 2018, dropping to $235,000. This was $5,000 less than in December 2018. The Average Price per Sq Foot for Sold Homes rose 3.8% in January 2019 to $138/sq ft. The Median List Price climbed 1.1%, increasing to $239,000 compared to January 2018. In December 2018, it stood at $244,990. The Average Price List Price per Sq Foot ticked up 3.1% to $164/sq ft compared to January 2018.
Supply and Demand
The supply of single-family homes jumped by 16.7% from January 2018 to 2.75 months. In December 2018, the supply was slightly lower (2.68 months). The Absorption Rate*, which shows the rate that homes sell during a given time period, fell 17.4% from January 2018 to 0.24 . This indicates the market is neutral, not favoring buyers or 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%
Despite rising prices, Tampa Bay remains among the most affordable major metro areas in which to buy a house. The online mortgage resource firm HSH.com found that the buyer of a $235,000 house — the median price of bay area single-family homes — would need an income of $55,105 assuming a 20 percent down payment and a mortgage with a 4.9 percent interest rate. With 10 percent down, the income amount would rise to $63,319.
The most affordable cities are Pittsburgh with a $36,659 income followed by Cleveland ($36,659) and Oklahoma City ($40,437.) The most expensive cities are in California, with San Jose leading with a $254,835 income needed to buy a median-priced house at $1.25 million.
From the Blog:
From the Blog:
Many homeowners believe that rising interest rates and home prices have scared away buyers and therefore have not listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming!
NerdWallet’s 2018 Home Buyer Report revealed that:
“Approximately one-third (32%) of Americans plan to purchase a home in the next five years. Millennials are most likely to have such a purchase in their five-year plan (49%), versus 35% of Generation X and 17% of baby boomers.”
As we can see, buyers are optimistic! According to the report, here are the top reasons Americans plan to buy:
The most common reason Americans prioritize buying is that they believe it’s a good investment!
If you’re a homeowner looking to sell, 2019 is the perfect year to put your house on the market. But why?
- Buyers want to buy
- No competition!
At least 3 of the renowned organizations that report on real estate market trends predict that homeowners are going to wait until 2020 to list their homes, leading to a nice increase in sales (as shown in the graph below).
Don’t wait for a competitive market; be ahead of the curve and sell your house at the best possible price!
There are plenty of buyers entering the market! Whether you’re a first-time homebuyer or a current homeowner looking to move-up to your next home, let’s get together to discuss your real estate needs!
February 21, 2019
Mortgage rates fell for the third consecutive week, continuing the general downward trend that began late last year. Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.
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!