Happy Monday, June 17, 2019
In May 2019, the Hillsborough County housing market favored Sellers!
In May 2019, Home Sold rose 1.8% from May 2018 and 9.1% from April 2019. Homes for Sale also climbed 2.6% from one year earlier and 0.9% from April 2019. Homes Under Contract jumped 8.6% compared to April of this year and 15.9% compared to May a year ago. Months of Inventory held steady at 2 months, the same as May 2018.
The Average Sold Price per Square Footage stayed flat compared to April 2019 but ticked up 1.4% compared to May 2018. The Median Sold Price rose 4.8% and the Average Sold Price climbed 4% from April 2019. The Average Days on Market increased 15.7% compared to the previous May. The ratio of Sold Price vs. Original List Price of 95% fell 1% compared to May 2018.
In May 2019, 2086 homes sold in Hillsborough County. That was a 1.8%more than the 2049 sold in May 2018 and 9.1% higher than the 1912 sales in April 2019.
Current Inventory of Homes (For Sale)
In May 2019, 109 or 2.6% more single-family homes were listed for sale than in May 2018. The May inventory of homes for sale rose 0.9% compared to April of this year.
Property Under Contract (Pending)
In May 2019, 8.6% more homes were under contract than in April 2019 (2360 versus 2174) and 15.9% more were for sale than in May 2018.
The Average Sold Price per Square Foot shows the direction of home prices. Median Sold Price and Average Sold Price can sometimes be skewed by outliers that sell for a really high or low price. So the Average Sold Price per Square Footage is a more normalized indicator of home values. The May 2019 Average Sold Price per Square Footage of $147 stayed the same as April 2019 but climbed 1.4% from $145 in May of last year.
The Days on Market Shows Neutral Trend
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for May 2019 was 59 days, a 1.7% drop from 60 days in April of this year and a 15.7% jump from 51 days in May 2018.
The Sold/Original List Price Ratio Remains Steady
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 95% was the same as April 2019 and down 1% from May of last year.
The Average For Sale Price is Neutral
The Average For Sale Price in May increased 4.8% to $482,000. It stood at $460,000 in May 2018. It decreased 0.2% from $483,000 in April 2019.
The Average Sold Price is Appreciating
The Average Sold Price in May rose 2.3% to $312,000. Last May it came in at $305,000. It was up 4% from $300,000 in April of this year.
The Median Sold Price is Appreciating
The Median Sold Price in May climbed 3.2% to $260,000. In May 2018 it stood at $252,000. In April of this year it was $248,000 or 4.8% lower than in May 2019.
April was a Seller’s Market*
A comparatively lower Months of Inventory benefits sellers while a higher Months of Inventory favors buyers.
*Buyer’s market: more than 6 months of inventory
Seller’s market: less than 3 months of inventory
Neutral market: 3 – 6 months of inventory
Months of Inventory based on Closed Sales
The May 2019 Months of Inventory based on Closed Sales of 2 months held steady compared to May 2018 and fell 9.1% compared to April 2019.
*Buyer’s market: 16.67% and below
Seller’s market: 33.33% and above
Neutral market: 16.67% – 33.33%
Absorption Rate based on Closed Sales
The May 2019 Absorption Rate based on Closed Sales of 49.4 declined by 0.8% compared to May of last year. It rose 8.3% compared to April 2019.
HILLSBOROUGH COUNTY, Fla. — U.S. News & World Report’s new rankings group schools by region and the Best High Schools report named its top schools in Tampa Bay, placing Hillsborough County high schools in the top four positions.
- Hillsborough County schools named four top schools in Tampa Bay
- Ranks are based on six elements of criteria
- Superintendent Jeff Eakins gives credit to numerous leaders
- SEE THE LIST: Best ranked high schools in Bay area
12 of the top 18 spots were filled by schools in Hillsborough County, with 11 schools operated by Hillsborough County Public Schools and one independently operated charter school.
The top-ranked schools in Tampa Bay from highest to lowest are:
1. Plant High School in Tampa (95% Graduation Rate, 67.3 College Readiness Score)
2. Steinbrenner High School in Lutz (96% Graduation Rate, 56.2 College Readiness Score)
3. Newsome High School in Lithia (97% Graduation Rate, 58.8 College Readiness Score)
4. Sickles High School in Tampa (95% Graduation Rate, 51.6 College Readiness Score)
The school ranking are based on college readiness, math, reading profiency, math and reading performance, underserved student performance and college curriculum breadth and graduation rate.
“Credit for this goes to every single person on these campuses: students, parents, teachers, support staff and partners. Our district has been laser-focused on student success and increasing graduation rates, and it’s great to be recognized for everyone’s hard work,” Superintendent Jeff Eakins said.
“We’re proud of our work as state and national leaders in this area,” he said.
A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.
The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.
1. Interest Rates
One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.2. Building Materials
Talk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in homebuilding. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials.
3. Economic Slowdown
In a prior blog post on this topic, we began the year with many economic leaders thinking we could expect a recession in late 2019 or early 2020. As spring approached, we reported that economists had started to push that projection past 2020. Now, three leading surveys indicate that it may begin in the next eighteen months.
We are in a strong housing market. Wages are increasing, home prices are appreciating, and mortgage rates are the lowest they have been in 21 months. Whether you are thinking of buying or selling, it’s a great time to be in the market.
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Here are 5 compelling reasons listing your home for sale this summer makes sense.
1. Demand Is Strong
The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.
Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.
Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.
3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days. (Last numbers available.)
4. There Will Never Be a Better Time to Move Up
If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!
According to CoreLogic, prices are projected to appreciate by 4.8% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
5. It’s Time to Move on with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to start living the life you desire.
That is what is truly important.
June 13, 2019
Mortgage rates were mostly unchanged from last week due to easing of trade tensions with Mexico which helped stabilize markets. These historically low rates should provide continued opportunities for current homeowners to refinance their mortgages – which combined with new homebuyer activity – will help sustain the momentum in the housing market in 2019.
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 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!