Happy Monday, September 28, 2020
The Hillsborough County Single-Family Housing Market Favored Sellers in August 2020!
Summary of Key Stats Year over Year (YoY) and Month over Month (MoM):
More Detailed Analysis and Commentary
Home Sales (Sold)
In August 2020, 1,982 single-family homes sold in Hillsborough County, a decline of 2.1% from the 2,024 sold in August 2019 It was 9.3% fewer than the 2,185 sales in July 2020.
Current Inventory of Homes (For Sale)
In August 2020, single-family homes for sale fell 50% or 2,050 homes compared to August 2019. August 2020 inventory dropped 7.5% compared July 2020.
Homes Under Contract (Pending)
In August 2020, 2,111 single-family homes were under contract, a decrease of 3.2% compared to July of this year. August 2020 pended homes sales jumped 15.9% compared to August of last year.
The Average Sold Price per Square Footage indicates which direction home prices are headed. 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 August 2020 Average Sold Price per Square Footage of $169 rose 1.2% from $167 in July 2020 and 12.7% from $150 in August 2019.
The Days on Market Shows a Downward Trend
The Average Days on Market (DOM) shows how many days the average home is on the market before it sells. An upward trend in DOM indicates 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 August 2020 was 47 days, down 9.6% from 52 days in July 2020 and August 2019.
The Sold/Original List Price Ratio is Rising
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to decrease 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. August 2020’s Sold Price vs. Original List Price of 97% stayed flat compared to July 2020. It ticked up 1% compared to August 2019.
The Average For Sale Price is Appreciating
The Average For Sale Price in August was $618,000, up 30.1% from $475,000 in August 2019 and 2.7% from $602,000 in July 2020.
The Average Sold Price is Neutral
The Average Sold Price in August was $364,000, up 15.2% from $316,000 in August 2019 and down 1.1% from $368,000 in July 2020.
The Median Sold Price is Appreciating
The Median Sold Price in August was $290,000, up 11.5% from $260,000 in August 2019 and the same as July 2020.
August 2020 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
The Absorption Rate measures what percentage of the current active listings are being absorbed each month.
*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 August 2020 Absorption Rate based on Closed Sales of 96.8 jumped 95.9% compared to August 2019. It decreased 1.9% compared to July 2020.
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Homeownership is one of the best ways to invest in your financial future, especially as your home equity grows. Home equity is a form of forced savings that can work to your advantage as the value of your home appreciates. Across the country, home equity was increasing before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful options in this market.
According to the just-released Q2 Homeowner Equity Insights Report by CoreLogic:
“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.”
Dr. Frank Nothaft, Chief Economist for CoreLogic, attributes much of the equity growth to rising home prices:
“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”
As the map below shows, CoreLogic also indicates that home equity is increasing in every state:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”
What Does This Mean for Sellers?
When equity is rising, as it is today, you may have more invested in your home than you realize. Mark Fleming, Chief Economist at First American, notes:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
If you’ve been considering making a move – whether that’s to get into a bigger home or to downsize to a smaller one – it’s a great time to reach out to a real estate professional to learn how to put your equity to work for you. You may be in a position to pay that equity forward toward your next home purchase and afford it sooner rather than later.
If you’re thinking of selling, let’s connect so you can take advantage of what the current market has to offer today.
September 24, 2020
Mortgage rates set several record lows over the last few months and have remained low into September. While there is room for rates to decrease even more, higher home prices and low inventory could potentially stifle the high demand that we’ve been seeing.
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.