Happy Monday, March 5, 2018
Let’s kick off this month of Market Monday‘s with a review of how housing in the Tampa area’s biggest county, Hillsborough, performed in February 2018.
In February of 2018, 57 fewer single-family homes sold compared to February 2017. In 2018, 1,270 homes changed hands compared to 1,327 in 2017. That means sales dropped 4%. The number of homes for sale also fell from 7,517 in February of 2017 to 6,181 in February of this year. So 1,336 or 18% fewer homes were on the market than February of last year. Also, 2,027 new properties came onto the market in February 2018, 32 fewer than February 2017 when 2,059 new properties were listed for sale.
Housing Inventory, measured by Months Supply of Inventory, fell 35% compared to February 2017. Last February, the Hillsborough market had 3.2 months of supply, but this February the inventory had dropped to 2.1 months. The Average Days a Home Stayed on the Market stayed at 52 days, the same as February a year ago. So homes sold at the same pace as 2017.
Median Sold Price, which is the price half the homes sold for, climbed from $225,000 in February a year ago to $236,795 in February 2018. This $11,795 price increase was 5% higher than last February. The Median For Sale Price of homes also rose 4% from $263,900 to $275,000, a jump of $11,100.
The story remains much the same as last month. A low inventory of homes is slowing sales somewhat, but as winter turns to spring, more homes should come onto the market. This is good news for buyers who have not found what they want yet. It is also a great opportunity for those who plan to sell. My advice is to start the process now, so you can get ahead of the glut of listings that will hit later in the spring.
Now let’s look at some of the most helpful and interesting blog posts, articles, and infographics we’ve run across this week. Enjoy!
There are innovative options being added to existing highways, such as express toll lanes, and even some hyper-local transit options in the works.
Now this list doesn’t include the autonomous shuttle project touted along the Marion Street Transitway. The shuttle wasn’t ready by the end of January and the Hillsborough Area Regional Transit Authority had to fire the contractor.
And the controversial plan to add express toll lanes along Interstates 275 and 4 called Tampa Bay Next — previously known as Tampa Bay Express — has been delayed to get public input but is still in the works.
Here are the projects coming online soon, and in the future:
From the Blog:
“If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.”
As the U.S. economy continues to chug along at a steady pace, interest rates have been rising — making it more expensive to buy and own a home.
The 30-year fixed mortgage rate hit 4.4 percent during the week of Feb. 22, the highest measure in nearly four years, according to Freddie Mac.
So when mortgage rates spike, how does that translate into dollars?
Let’s say you decide to purchase a $300,000 home with a down payment of 20 percent, or $60,000, and apply for a $240,000, 30-year, fixed-rate mortgage. If that loan carries a rate of 3.66 percent — the rate in February 2016 — you would pay $1,099 per month, or $395,640 in total over the loan term — excluding taxes and insurance.
But at the current rate of 4.4 percent for the same loan, you would pay $1,202 per month, or $432,720 in total. That’s an increase of more than $37,000 over the loan term.
House Republicans voted to pare back a popular benefit for people selling their primary homes, but in the end lawmakers retained the existing provisions in the new tax law.
Married couples filing jointly can continue to exclude $500,000 of profit on the sale of a primary home from taxes. For single filers, the exemption is $250,000 of profit.
Optimistic testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell sent Treasury yields higher as Powell stated his outlook for the economy has strengthened since December. Following Treasurys, the 30-year fixed mortgage rate jumped 3 basis points to reach 4.43 percent in this week’s survey. The 30-year rate has been on a tear in 2018, climbing 48 basis points since the start of the year and increasing for 8 consecutive weeks.
As we documented, historically when mortgage rates surge, housing swoons. But we think strength in the economy and pent up housing demand should allow U.S. housing markets to post modest growth this year even with higher mortgage rates. We really have to wait for housing markets to heat up in spring, but early indications are that housing demand remains robust to these rate increases. The MBA reported in their latest weekly applications survey that home purchase mortgage originations were up 3 percent from a year ago.
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 New Year!
Search for Tampa Homes By Neighborhood
Tampa, a beautiful, modern city located on the Gulf Coast of Florida, is bordered by Old Tampa Bay and Hillsborough Bay, which come together to makeup Tampa Bay. It offers…
View 3546 homes
Apollo Beach is a vibrant waterfront community, located in Hillsborough County in Tampa, FL. It features over 50 miles of interconnected canals that lead to Tampa Bay and the Gulf…
View 325 homes
Land O’ Lakes, located in Pasco County, is north of downtown Tampa. It’s also part of the Tampa-St. Petersburg-Clearwater, Florida MSA. The population of the area is a little over…
View 468 homes
FishHawk, Hillsborough County’s first “green community”, is made up of a variety of smaller communities located in Lithia, Florida. They including Starling at FishHawk, The Preserve, FishHawk Ranch and FishHawk…
View 215 homes
Lutz, which began as a small train depot on the Tampa North Railroad, now has about 20,000 residents. It was named for W. P. Lutz, who brought the railroad to…
View 424 homes
New Tampa, Tampa Bay’s fastest growing community is located in the northern side of Tampa. New Tampa, well-known for its master-planned communities, features upscale residences surrounded by lakes, lush green…
View 361 homes
The Carrollwood area, about 7 miles northwest of Tampa includes two distinct communities — Carrollwood and Carrollwood Village. Both are located in Hillsborough County. Together, they have a population of…
View 266 homes
Odessa, located in Pasco County started as a community of open spaces that residents used for ranches and horse farms. But in more recent years, it has grown considerably due…
View 271 homes
Brandon is an appealing suburb, east of downtown Tampa, Florida. It offers residents a quieter, family-oriented lifestyle just outside of Tampa’s city center. Over 100,000 people call it home and…
View 311 homes
Riverview, Florida, located in Hillsborough County near Tampa has nearly 80,000 residents. The community saw its population increase close to 500 percent from 2000 to 2010 as new development occurred…
View 703 homes
South Tampa, located on the Interbay Peninsula, includes areas of Tampa south of Kennedy Boulevard. Many of Tampa’s most unique and in-demand neighborhoods, Beach Park, Ballast Point, Bayshore Beautiful, Bayshore…
View 1055 homes
Ruskin, located in Hillsborough County, Florida, near Tampa’s South shore has blossomed since the early 2000’s. It’s population, which doubled from 2000 to 2010 now tops 17,000 residents. Background The…
View 297 homes
Valrico, located east of Tampa, is home to more than 35,000 residents. The population has expanded over 400% since 2000, when only 6,500 residents lived there. The median house or…
View 263 homes
Wesley Chapel, in Pasco County, has been one of Tampa Bay’s fastest growing communities during the past 10 years. Currently, there are over 45,000 residents, 16,000 households and 12,000 families…
View 502 homes
Westchase, founded in 1991, is a luxurious planned community located between Tampa and Clearwaterin Hillsborough County. It has around 22,000 residents and is one of the most affluent subdivisions the…
View 154 homes
Are you seeking a one-of-a-kind luxury home? You’ll discover many remarkable million-dollar-plus properties in the Tampa area. Whether you prefer living on the water with spectacular views, a Championship golf…
View 3772 homes
If you love golf, you’ll love the Tampa Bay area’s challenging and picturesque golf courses set in vibrant and beautiful communities on the Gulf Coast. You can enjoy a daily…
View 6222 homes
Living on the waterfront means a variety of things to different people. Some love the all-the-time access to sunshine, the beach and the ocean. For other it’s about a peaceful…
View 13625 homes
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!