Happy Monday, October 29, 2018
In September 2018, 12.1% more single-family homes were listed for sale in Hillsborough County than in September of 2017. Compared to August 2018, listings rose 5.4%. The number of homes that sold climbed 10% year over year but fell 20.6% month over month. The number of listings under contract also jumped 54.1% compared to last September and 1.2% compared to last month. The Months of Inventory, which measures the available supply of homes for sale, held steady at 2.8 months year over year.
The Average Sold Price per Square Footage increased 3.6% compared to September 2017, as well as last month. The Median Sold Price (the price above which half the homes sold for) declined 1.3% from last month, while the Average Sold Price ticked up 0.7% compared to August 2018. Based on the 6-month trend, the Average Sold Price trend is “neutral,” while the Median Sold Price trend is “depreciating.”
The Average Days on Market showed a neutral trend, dropping 7.7% compared to September 2017. The ratio of Sold Price vs. Original List Price stayed at 95%, the same as September 2017.
Home Sales (Sold)
In September 2018, 1997 homes sold, 10% more than the 1825 that sold in September of 2017 and 20.6% lower than the 2516 sales in August 2018.
Current Inventory of Homes (For Sale)
The total number of homes for sale rose by 610 units or 12.1% compared to a year ago at this time and 5.4% compared to a month ago.
Property Under Contract (Pended)
Homes under contract (pending) climbed 54.1% compared to last year, but fell 1.2% compared to last month.
The Average Sold Price per Square Footage indicates the direction of property values. In September 2018, the Average Sold Price per Square Footage was $145, up 3.6% from $140 in August 2018 and September 2017.
The Days on Market Shows Neutral Trend
The average Days on Market (DOM) shows how many days, on average, homes stay on the market before they sell. If this measure trends upward it indicates a move towards more of a Buyer’s market, but if it trends downward it indicates a move towards more of a Seller’s market. The DOM for September 2018 was 48 days, down 2.1% from 47 days last month and down 7.7% from 52 days in September 2017.
The Sold/Original List Price Ratio Remains Steady
The Sold Price vs. Original List Price shows the average amount that sellers are decreasing 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 held steady at 95% compared to last September, but was down 1% from last month.
The Average For Sale Price is Depreciating*
The Average For Sale Price in September of $410,000 decreased 1.2% from $405,000 in September of 2017 and down 0.7% from $413,000 in August 2018.
The Average Sold Price is Neutral*
The Average Sold Price in September of $273,000 rose 1.1% from $270,000 in September of 2017 and 0.7% from $271,000 last month.
The Median Sold Price is Depreciating*
The Median Sold Price in September was $225,000, up 2.3% from $220,000 in September of 2017 and down 1.3% from $228,000 in August 2018.
*Based on 6-month trend
It’s 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 September 2018 Months of Inventory of 2.8 months was the same as September 2017 but 32.7% higher than a month ago.
*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 September 2018 the Absorption Rate was 35.2, 2% lower than a year ago and 24.8% lower than a month ago. This indicates the market is in the seller’s favor.
SmartAsset recently released a ranking of all of Florida’s 67 counties, showing each county’s GDP growth and GDP index.
To gather data, SmartAsset looked at the change in the number of businesses established in each location over a three-year period, GDP growth with adjusted inflation, investment and development based on the number of new building permits per 1,000 homes and federal funding received by each county.
Hillsborough County saw some of the most growth based on GDP, with a growth index of 8.57 and 6.8 percent growth, while Pinellas had 4 percent growth and a GDP growth index of 7.23.
The scores of each county were compiled to create a final ranking. An index was created where the county with the most incoming investments was assigned a value of 100 and the county with the least investment activity received a zero.
See the full report here.
From the Blog:
There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer these questions:
The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter.
Zelman & Associates – The firm leverages unparalleled housing market expertise, extensive surveys of industry executives, and rigorous financial analysis to deliver proprietary research and advice to leading global institutional investors and senior-level company executives.
Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.
Freddie Mac – An organization whose mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.
The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.
Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets always.
Here are their projections of prices going forward:
Every source sees home prices continuing to appreciate – just at lower percentages as we move through the next several years.
For those looking to invest in real estate, understanding the current market is essential to striking an optimal deal. But for current property owners or aspiring investors, it’s equally important to know where the market is headed in the coming years. Any plans to buy, rent or sell in the near future could be significantly impacted by market conditions, and you may decide to make a move or wait it out depending on the circumstances.
To help you strategize your next real estate transaction, we asked the experts at Forbes Real Estate Council what they believe the most prevalent market trends will be in the next few years. Here’s what they had to say.
Should you spend the money to pre-inspect your home before putting it on the market? Absolutely! As homeowners we tend to get attached to our homes in their current state and over time it’s common for flaws to blend in. A Buyer is not going to overlook the flaws and defects, nor have the same attitude about “living with it.” Sometimes you may not even be aware of an underlying problem!
A few reasons why we think a pre-inspection is money in your pocket:
Know the exact condition of your home – Price your home more accurately. You don’t have to fix everything the inspector finds, but with knowledge you can price your home to sell based on its present condition or make upgrades that will improve its marketability.
Reassure prospective buyers – Gain the competitive edge. A pre-inspection is a goodwill gesture to buyers. It demonstrates a willingness to go beyond the expected and sets you apart from other sellers.
You can make the repairs in advance – Buy time and save money. A pre-inspection allows you to repair the items that are going to be a “Buy or Not Buy” decision factor while you have the luxury of time to choose the right contractor at the right price.
Minimize stress in the sales process – Close more quickly. Knowing your home’s condition up front removes the stress and anxiety that the buyer’s 10-day due diligence period can induce in a seller. You will likely sail through the buyer inspection, avoiding some of the nitpicking and additional costly concessions that can occur.
When it comes to home inspections, you can make a small mistake of paying for a pre-listing inspection and finding very little wrong, or you can make the big mistakes not paying for this inspection and being later blindsided by the unexpected. The reality is that a few hundred dollars spent on a pre-listing inspection may, in the end, save you thousands of dollars.
To find a good inspector, ask friends as well as your real estate agent for recommendations, request a sample of their reports, the extent of their field experience, and make sure that the inspector is licensed and certified by the American Society of Home Inspectors or ASHI. Expect to pay several hundred dollars depending on the size of your home, the number of systems (additional HVAC unit and pool/spas will cost extra) and the extent of inspections required.
October 25, 2018
Despite volatility in the stock market, the 30-year fixed-rate mortgage inched forward just 1 basis point to 4.86 percent this week. We expect rates to continue to rise, which will put downward pressure on homebuying activity. While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition.
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 make up 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!