Happy Monday, June 25, 2018
As June comes to a close, let’s take a big-picture view and see how the housing market performed across the Greater Tampa area — which includes all the communities listed below.
As you see below, Total Sold Dollar Volume, Closed Sales, Median Sold Price, Average Average Sold Price and Average Price Per Square Foot rose compared to May 2017 (YoY). Average Days on the Market fell 1.8%, while Median Days on the Market held steady. On a month-to-month (MoM) basis (or April 2018 compared to May 2018), Total Sold Volume, Closed Sales and Median Sold Price increased, while Average Sold Price, Average Days on the Market and Average Price Per Square Feet decreased. Median Days on the Market stayed flat.
(See table below for details).
The data in the chart above includes all types of housing, but let’s take a closer look at the sale of single-family homes. As you’ll see below, Closed Sales rose 2.3% compared to May 2017, as 2,901 SFHs sold. That was 473 or 19.4% more than in April 2018. (Just place your cursor on the bars in the graph to see the stats.)
The Number of Active Listings fell 1.5% from May a year ago, as 5,890 homes were for sale (255 or 4.5% more than in April 2018). New Listings ticked up 0.7% from May a year ago, as 3,443 homes came onto the market. In April 2018, 3,223 homes came onto the market, 200 or 5.8% less than in May 2018.
The May 2018 Median Price jumped 5.5% over May of 2017, climbing to $248,000. This was $6,000 or 2.4% higher than in April. The Average Price per Sq Foot for Sold Homes rose 5.3% in May 2018 to $139/sq ft, just $1 more than in April 2018. The Median List Price gained 5%, rising to $314,860 compared to May a year ago. In April, it stood at $309,365. The Average Price List Price per Sq Foot increased 4.5% to $164/sq ft, $1 lower than in April 2018.
Supply and Demand
The supply of homes declined 4.5% from May 2017 to 2.47 months. In April 2018, the supply came in at 2.37 months. The Median Days on the Market, which shows how fast homes are selling, rose 4.5% to 23 days. That means half of the homes in the Greater Tampa real estate market sell in 23 days or faster. By comparison, in April this measure was 21 days.
As expected, sales and prices moved higher as spring/summer, the busiest home selling season, progressed. This demand coupled with the drop in new listings put downward pressure on the supply of homes for sale. So now is the time to get your home on the market, as buying is likely to taper off when summer ends, school starts , and buyers get back to their normal routines.
Now I’d like to share some of the most helpful and interesting blog posts, articles, and infographics we’ve seen this week. Enjoy!
Norwegian Airlines announced Monday it will start direct flights twice a week between Tampa International Airport and London’s Gatwick Airport effective Oct. 31, giving TIA another highly prized international flight.
Bookings are available online at Norwegian’s web site with introductory economy fares starting at about $215.
“The arrival of Norwegian Air is yet another example of the strength of our region,” Tampa International Airport CEO Joe Lopano said in a statement released Monday.
The new service also brings a couple of firsts for Tampa International:
• It will be the first time Tampa passengers have a choice of two nonstop airlines to the same European city. (British Airways flies daily between Tampa and Gatwick.)
• It will be the first regularly scheduled service at Tampa International Airport flying Boeing 787-9 Dreamliner jets, known for their quiet, comfy rides and good fuel efficiency. They have 309 economy seats and 35 premium seats.
“As our community continues to grow, the airport is growing with it,” Lopano said. “We expect this to be a very popular service, particularly for our British visitors, and we look forward to a great partnership with Norwegian in coming years.”
With Norwegian Air, Tampa International now has seven international carriers and flies to more than a dozen cities around the world. The airport has seen a more than 120 percent increase in international passenger growth since 2011.
From the Blog:
- Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available!
- Housing inventory is still under the 6-month supply needed to sustain a normal housing market.
- Perhaps the time has come for you and your family to move on and start living the life you desire.
The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that the main reason why non-homeowners do not own their own homes is because they believe that they cannot afford them.
This brings us to two major misconceptions that we want to address today.
1. Down Payment
A recent survey by Laurel Road, the National Online Lender and FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.
According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.
What these people don’t realize, however, is that there are many loans written with down payments of 3% or less.
Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
An Ipsos survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores for approved conventional and FHA mortgages are much lower.
The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724. The chart below shows the distribution of FICO® Scores for all loans approved in May.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but you are not sure if you are ‘able’ to, let’s sit down to help you understand your true options today.
Online searching is a popular means for home buyers to try and locate the right home for them. But while the technology is there for people to find the right house for them, a search of what the local market can offer may not tell them everything they need to know about buying a home.
First-time homebuyers have misconceptions, and their lack of experience — and their high enthusiasm — can put them in a potentially rough spot. Real estate agents have the tough job of educating first-time homebuyers on the process of buying a new home, including dispelling persistent myths.
To help, eight members of Forbes Real Estate Council share some of the most common misconceptions first-time homebuyers have, as well as discuss how these misconceptions can hamper them. Here’s what they said:
Buying a home is not like purchasing a plane ticket, and selling a property is not like selling a car
In the eyes of some consumers, the Internet and associated technology have replaced the critical importance of the working Realtor. Unfortunately, a bad experience or failed transaction is the painful lesson for buyers and sellers who forgo a professional real estate agent to represent them in the most expensive purchase/sale they will ever make.
Before joining the ranks of these now-enlightened consumers, take a moment to understand the extraordinary value your agent brings to the table — and the risks he or she must accept on a daily basis.
Mortgage rates inched back over the past week and have now declined in three of the past four weeks.
After a sharp run-up in the early part of 2018, mortgage rates have stabilized over the last three months, with only a modest uptick since March. However, existing-home sales have hit a wall, declining in six of the last nine months on a year-over-year basis.
This indicates that persistently low supply levels, and not this year’s climb in mortgage rates, are handcuffing sales – especially at the lower end of the market. Home shoppers can’t buy inventory that doesn’t exist.
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!