Happy Monday, June 4, 2018
As the new month starts, let’s look back at how the Tampa (Hillsborough County) housing market performed in May of 2018.
In May of 2018, home sales stayed about where they were a year ago in May, as 5 fewer single-family homes sold. This May 2,035 homes sold compared to 2,040 in May 2017. On a monthly basis (April 2018 compared to May 2018), home sales rose 26%, as 420 more homes sold in May. The number of homes for sale dropped 21% from 8,785 in May of 2017 to 6,972 in May 2018. That means 1,813 fewer homes were on the market than May a year ago. But there were still 167 more homes for sale than in April 2018. Also, 2,504 new properties came onto the market in May, 1% or 29 fewer homes than a year ago in May and 48 more than in April 2018.
Housing Inventory, measured by Months Supply of Inventory, continued to plunge, as it dropped 44% compared to May of 2017. Last May, the Hillsborough market had 3.3 months of supply, but this May the inventory had decreased to 1.9 months. By comparison, Months Supply of Inventory stood at 2.0 months in April 2018. The Average Days a Home Stayed on the Market ticked down one day from 45 in May 2017 to 44 in May 2018. Last month, homes sold in 45 days, on average.
Median Sold Price, which is the price half the homes sold for, rose 5% or $11,000 from $239,000 in May 2017 to $250,000 in May 2018. Last month, the Median Sold Price was slightly lower at $249,000. The Median For Sale Price of homes climbed 8% or $22,000 from $267,000 to$289,000. Last month, the Median Sale Price stood at $288,900.
Demand for homes in Hillsborough County is the same as last year at this time, but supply is way down. This suggests that many more homes would be selling if more homes were for sale. Most of the US and Tampa is currently experiencing a strong seller’s market. But buyers remain motivated knowing that if they wait to buy interest rates could rise higher and eat away their purchasing power. If you plan to sell, there is no better time than RIGHT NOW!
Now let’s look at some of the most helpful and interesting blog posts, articles, and infographics we’ve run across this week. Enjoy!
“If you look at the price of sporting events, concerts and movies, we are still on pace as a value, hour by hour, as the most reasonably priced experience,” Speigel said. “And theme parks are about the last place left that the family can go to as a unit.”
And bargains are available for Florida residents. From now until the end of June, Florida residents can get a three-day ticket to Walt Disney World for just $159.
Many of the parks have buy-one-get-one deals or discounted admissions, so be sure to check our info box with each park to get details on current bargains.
With more than 116 million visitors in 2017 (another record), Florida remains the top travel destination in the world. We have some of the world’s prettiest beaches and waterways, but also five of the 10 most visited theme parks. Record sales have inspired the industry to spend millions on ever more exciting attractions, so that makes the admission price even more valuable.
Read on for our guide to what’s new in Florida’s theme parks this summer.
From the Blog:
Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, some are guessing that home prices will depreciate.
However, some prominent experts in the housing industry doubt that home values will be negatively impacted by the rise in rates.
Mark Fleming, First American’s Chief Economist:
“Understanding the resiliency of the housing market in a rising mortgage rate environment puts the likely rise in mortgage rates into perspective – they are unlikely to materially impact the housing market…
The driving force behind the increase are healthy economic conditions…The healthy economy encourages more homeownership demand and spurs household income growth, which increases consumer house-buying power. Mortgage rates are on the rise because of a stronger economy and our housing market is well positioned to adapt.”
Terry Loebs, Founder of Pulsenomics:
“Constrained home supply, persistent demand, very low unemployment, and steady economic growth have given a jolt to the near-term outlook for U.S. home prices. These conditions are overshadowing concerns that mortgage rate increases expected this year might quash the appetite of prospective home buyers.”
Laurie Goodman, Codirector of the Housing Finance Policy Center at the Urban Institute:
“Higher interest rates are generally positive for home prices, despite decreasing affordability…There were only three periods of prolonged higher rates in 1994, 2000, and the ‘taper tantrum’ in 2013. In each period, home price appreciation was robust.”
Industry reports are also calling for substantial home price appreciation this year. Here are three examples:
- The Home Price Expectation Survey says that prices will appreciate by 5.8% this year.
- The Freddie Mac Outlook Report is looking for home prices to appreciate by around 7% in 2018.
- The CoreLogic HPI Forecast indicates that home prices will increase by 5.2% on a year-over-year basis.
As Freddie Mac reported earlier this year in their Insights Report, “Nowhere to go but up? How increasing mortgage rates could affect housing,”
“As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
Listings for homes for sale have dropped year-over-year for 34 consecutive months, according to the National Association of Realtors, as prospective buyers are likely aware. Yet the most recent Housing Trends Report by the National Association of Home Builders shows that most home buyers won’t give up looking for a home.
Among the 17 percent of people who responded to the NAHB pool that they were planning to buy a home in 2018, 42 percent said they were actively searching for a home during the first quarter of 2018. More than half (51 percent) reported they had already been looking for a house for three months or longer.
Trying to sell your home, but no one’s buying? Don’t beat yourself up quite yet—there are lots of complex reasons why a home might not sell the instant it hits the market, many of which are beyond your control.
However, there are also a lot of (to put it bluntly) dumb reasons a home won’t sell, too—things that home sellers could have easily avoided had they made a minimal effort to do their homework and enter the fray prepared.
Hey, we get it: Home selling is one of those things you might do only once or twice in your life, so it’s understandable if you don’t know every nuance of how to do it right. So, no judgments! Still, in an effort to steer you away from these pitiful pitfalls, we thought we’d sit you down for a heart-to-heart and spell out a few no-no’s to avoid before putting your house on the market.
Behold these seven dumb reasons people can’t sell their home—if you commit any of these blunders, that’s on you.
May 31, 2018
After climbing to their highest level in over seven years, mortgage rates fell over the past week.
The 30-year fixed-rate mortgage fell 10 basis points to 4.56 percent. The decline was driven by recent trade and geopolitical issues, which led to a sudden decrease in long-term Treasury yields.
Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continued to trend higher from a year ago. Even if rates climb closer to 5 percent, sales have room to grow more, but only if current supply levels start increasing more meaningfully.
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!
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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.
Have a Fantastic week!