Hillsborough County’s (Tampa) housing market continued to outpace 2017 performance in March.
Median Sold Price* increased 11% compared to March of 2016, as 1,747 Homes Sold. That was 144 more than last March or a 9% jump. In contrast, there were 227 fewer Homes for Sale, a of 3% decline from a year ago.
The Average Number of Days a home stayed on the market before selling also dropped 14%, as homes sold in 51 days on average, compared to 60 days in March of 2016. Housing Inventory continued to dwindle, as Months of Supply hit 1.8 months versus 2.6 months in March 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.)
Housing continues to outperform 2016 across Hillsborough County. The biggest challenge buyers face at the moment is so few homes to choose from. But even though mortgage rates fell this week, buyers will soon face rising mortgage rates. The Fed has indicated that they will likely raise rates two more times before the end of the year. These increases should eventually make mortgage rates higher. So if you’re ready to sell this year, the faster you get your home on the market the better.
(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!
Tampa Mayor Bob Buckhorn hopped into a giant excavator Wednesday morning to take the first bite out of the Water and Wastewater Maintenance Yard on Rome Avenue in West Tampa.
The city is demolishing the structure at that site to make room portions of the $350 million West River redevelopment plan, which includes a massive rehab to parts of West Tampa along the Hillsborough River north of downtown.
The plan calls for a more walkable community and a reimagined Main Street with robust shopping and dining options. New housing will accommodate residents of all incomes with a mix of single family homes, apartments and subsidized housing, according to the city’s website.
From the Blog:
“Consumers’ faith in the housing market is stronger than it’s ever been before, according to a newly released survey from Fannie Mae.”
“Americans’ confidence continued to mount last week as the Bloomberg Consumer Comfort Index reached the highest point in a decade on more-upbeat assessments about the economy and buying climate.”
“Confidence continues to rise among America’s consumers…the latest consumer sentiment numbers from the University of Michigan showed that in March confidence rose again.”
“U.S. consumers are the most confident in the U.S. economy in 15 years, buoyed by the strongest job market since before the Great Recession. The survey of consumer confidence rose…according to the Conference Board, the private company that publishes the index. That’s the highest level since July 2001.”
Ivy Zelman, in her recent Z Report, probably best capsulized the reports:
“The results were incredibly strong and…offer one of the most positive consumer takes on housing since the recovery started.”
If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so! We recently shared data from Trulia’s Market Mismatch Study which showed that in today’s premium home market, buyers are in control.
The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer, or can be found at a discount.
Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home.
Advice for Buyers:
Interest rates are on the rise. In March, Janet Yellen, chairwoman of the Federal Reserve, announced the second interest rate hike in the past three months. After raising the federal funds rate in December, the Fed raised rates by another quarter of a percentage point. The reason? Because the economy has been expanding at a “moderate pace.”
Generally as the economy strengthens, the Fed raises rates. So while rising rates are a positive signal for the economy as a whole, there are some consequences that aren’t always positive for potential homebuyers.
The central bank’s actions don’t directly affect mortgage rates. But increasing rates can make buying a home more expensive. So how will the Fed rate hike affect homebuyers this year?
Advice for Sellers
Shopping for a home has evolved over the years. Here’s what you need to know about the new generation of buyers.
For years we’ve seen the shift in Baby Boomers ditching their large suburban homes for the excitement of urban life. And we’re noticing the reverse from millennials: leaving behind small spaces along with the hustle and bustle of the city.
They’re open to a new world of suburban living, with single-family homes, more storage and closet space, and some outdoor space all their own.
These millennials, born between the mid ’80s and the late ’90s, came of age in a shifting cultural and social environment. Their experiences aren’t the same as their Baby Boomer parents, and as such, their preferences differ from those of their parents, who bought a generation ago.
Here are some real estate considerations to help you sell to millennial buyers.
The 10-year Treasury yield remained relatively flat this week. The 30-year mortgage rate fell 9 basis points to 4.14 percent, another significant week-over-week decline. Despite recent mortgage rate fluctuation, new home sales far exceeded expectations in February and jumped 6.1 percent to an annualized rate of 592,000.
- 30-year fixed-rate mortgage (FRM) averaged 4.14 percent with an average 0.5 point for the week ending March 30, 2017, down from last week when it averaged 4.23 percent. A year ago at this time, the 30-year FRM averaged 3.71 percent.
- 15-year FRM this week averaged 3.39 percent with an average 0.4 point, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 2.98 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18 percent this week with an average 0.4 point, down from last week when it averaged 3.24 percent. A year ago, the 5-year ARM averaged 2.90 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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