Tampa’s housing market started strong in 2017. Here’s a quick review of the January data.
Median Sold Price* jumped 8% compared to January of 2016, as 1,260 Homes Sold. That was 192 more than last January, a 19% gain. In contrast, the Number of Homes for Sale dropped 2% or 157 units from a year ago.
The Average Number of Days a home stayed on the market before selling also fell 13%, as homes sold in 60 days on average, compared to 68 days in January of 2016. Housing Inventory continued to dry up too, as Months of Supply hit 2.3 months versus 3.4 months in January of 2016. That represented a drop of 30%.
(MEDIAN SOLD PRICE – Median means “in the middle,” meaning that half of the homes sold above the Median Sold Price and half sold below it. For example, if 5 homes sold in a zip code for $200,000, $250,000, $300,000, $400,000 and $800,000, the Median Price would be the one in the middle. In this case, that would be the $300,000 home.In contrast, average selling price would just be the sum of the selling prices of the 5 homes divided by 5, or $330,000. Many real estate statisticians prefer median price as a better indicator of the “typical” price within an area or zip code. Why? It is not affected by “outliers” or homes sold at an extremely high or low price, like the $800,000 home in our example.)
The trends we saw through the end of last year have continued in January. Prices are up, inventory is down, and houses are selling faster. This should continue as many sellers have decided to get ahead of the spring rush by selling now. Concerns about rising interest rates have also had an impact as buyers seem more motivated to act now, rather than wait.
(Want a customized evaluation of your home and neighborhood, based on comparable homes that have sold recently? Call Annette Bohannon at 813-431-2840 and get a FREE detailed, market evaluation of your home or you can get a Free Market Report by following this link.)
Now let’s look at some of the best blog posts, articles and infographics we’ve found this week. Enjoy!
Based on data from the first three quarters of 2016, Tampa had a cost-of-living composite score of 91.5, as compared to the national average of 100. Sarasota, on the other hand, ranked above the national average with a score of 104.3.
From the Blog:
Is spring closer than we think? Depending on which groundhog you listen to today, you may have less time than you think to get your home on the market before the busy spring season.
Many sellers feel that the spring is the best time to place their homes on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.
The price of any item is determined by the supply of that item, as well as the market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.
Their latest edition sheds some light on the relationship between Seller Traffic (supply) and Buyer Traffic (demand).
Advice for Buyers:
Single women accounted for 17 percent of home buyers in the U.S. last year, compared to just 7 percent of single men, according to the National Association of REALTORS®. This housing gender gap has existed for awhile but it continues to widen for a variety of reasons, according to Jessica Lautz, NAR’s managing director of survey research and communications.
Existing-home sales increased 3.8 percent to a 10-year high in 20161, but affordability pressures, student debt and possible confusion about down payment requirements prevented many aspiring homeowners from reaching the market, according to recent consumer insight from the National Association of Realtors®.
NAR’s Aspiring Home Buyer Profile analyzed 2016 quarterly survey data from its Housing Opportunities and Market Experience (HOME) survey2 to capture movements in the housing expectations and sentiment of homeowners and non-homeowners — both renters and those living with a family member.
According to the findings, respondents last year maintained a favorable view about homeownership, with over 90 percent of homeowners and roughly eight out of 10 non-homeowners each quarter indicating that owning a home is part of their American Dream.
Advice for Sellers
Traditionally, the spring real estate market is March through May, but in many markets it can start as early as February, around Ground Hog Day. Sometimes sales continue to be robust, and the peak selling season will stretch into June.
Lessons from rush hour
Rush hour for traffic in many metropolitan areas is from 7 to 9 a.m. and 5 to 7 p.m. Commuters wanting to beat the heavy traffic will get on the road as early as 5 a.m. and often wait to leave after 7 p.m. In many ways, homesellers and buyers choose to follow that example.
Rush hour occurs because there are more cars than the highway system was designed to handle; it isn’t economic to construct enough roads for peak travel times.
There are incentives for traveling during peak hours, such as High Occupancy Vehicle (HOV) lanes, reduced fees on toll roads and free-flowing traffic on clear thoroughfares.
There are benefits to avoiding peak real estate seasons as well, with the most significant being less competition.
The 10-year Treasury yield fell 5 basis points this week following a tepid advance estimate of fourth-quarter GDP and the Fed’s decision to leave rates unchanged. The 30-year mortgage rate remained flat at 4.19 percent, starting the month 47 basis points higher than this time last year. Despite the uncertainty in the market, the pending home sales index increased 1.6 percent in December, up from a decline of 2.5 percent the month prior.
- 30-year fixed-rate mortgage (FRM) averaged 4.19 percent with an average 0.5 point for the week ending Feb. 2, 2017, unchanged from last week. A year ago at this time, the 30-year FRM averaged 3.72 percent.
- 15-year FRM this week averaged 3.41 percent with an average 0.5 point, up from last week when it averaged 3.40 percent. A year ago at this time, the 15-year FRM averaged 3.01 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23 percent this week with an average 0.4 point, up from last week when it averaged 3.20 percent. A year ago, the 5-year ARM averaged 2.85 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
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 week!
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