Happy Tuesday, September 4, 2018
Hope you had a great Labor Day Weekend!
We typically review real estate in New Tampa, Wesley Chapel, and Greater Tampa as a whole. But, recently we have started to include other areas that are not as large so you can understand the housing market in those places too. Today, we’ll look at Lutz, Florida.
One of the key statistics for homebuyers and sellers is Median List Price. This tells us the price above and below which half of the sellers in Lutz have listed their homes for sale. Currently, the price is $417,000. The Market Action Index shows us if buyers or sellers have an advantage in the area. It is now at 36, which is a little lower than last month. A Market Action Index above 30 favors sellers. If it drops below that mark, the buyer gains the advantage. The higher the MAI goes, the more prices typically go up.
The Real-Time Market Profile on page one of the report contains a summary of other key metrics: Price Per Square Foot is $151. Average Days on the Market stands at 121. Also, 55% of homes for sale in Lutz have seen a price decrease, while 5% have increased in price. Currently, Lutz has 248 homes listed for sale.
The Market Segments section below shows how fast homes sell by measuring Days on the Market (DOM) in a variety of price ranges. Each segment contains roughly 25 of the homes for sale. Typically homes in the lower price ranges sell faster than higher-priced ones.
Also, be sure to check out the articles below. You’ll find home buying and selling tips, as well as the latest information on mortgage rates.
How affordable is Tampa Bay? One test is whether someone earning the median income can afford the median priced home.
By that measure, we’re doing well, better than Florida’s two other major metro areas — Orlando and Miami.
A Tampa Bay buyer would need a salary of $54,627 to afford the median priced home ($238,700), according to mortgage information company HSH.com. The area’s median household income is $51,115.
From the Blog:
Here are five reasons why listing your home for sale this fall makes sense.
1. Demand Is Strong
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase…and are in the market right now! In fact, more often than not, multiple buyers end up competing with each other to buy the same homes.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon!
Historically, a homeowner stayed in his or her home for an average of six years, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.
3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to do all that they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 44 days.
4. There Will Never Be a Better Time to Move Up
If your next move will be into a premium or luxury home, now is the time to move up! The abundance of inventory available in these higher price ranges has created a buyer’s market for anybody looking to purchase these homes. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!
According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
5. It’s Time to Move on With Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you feel you should?
Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Buying a home in the spring and summer these days looks like something you’d see out of “The Hunger Games.” For sellers, it’s the golden opportunity to get the most return on their real estate investment. Buyers, on the other hand, might feel like they’re in a gladiator ring.
A lack of affordable homes in many markets, along with fierce competition, rising prices and higher mortgage rates, have sidelined many buyers this year. That was evidenced in July by a continued slump in existing-home sales, which crawled to their slowest pace in two years, according to data from the National Association of Realtors.
As summer fades to fall, though, recent market shifts could give buyers a leg up in the latter part of the year. In July, for instance, the national inventory of homes listed above $350,000 rose 5.7 percent, according to new data from Realtor.com. The inventory swell is mostly in markets that have seen continual price growth that’s starting to decelerate. In fact, 16 major housing markets had a year-over-year increase in their inventory levels, Realtor.com found.
These slight changes, along with less buyer competition and sellers eager to get to the closing table before the holidays, could give serious buyers more latitude, says Danielle Hale, Realtor.com’s chief economist.
Home sellers will remain in the driver’s seat through next year, according to housing economists surveyed by Zillow.
The majority of the 100 surveyed economists predicted that the housing market would remain a seller’s market despite the recent uptick in listings and slowing growth in prices, Zillow reported. Only the Midwest region is expected to turn in favor of buyers next year.
“For the past several years, home sellers held all the cards at the negotiating table, fielding multiple offers while buyers faced stiff competition and a fast-moving market,” Zillow Senior Economist Aaron Terrazas said.
“Conditions are starting to show signs of easing up, but the effects of years of limited construction still linger,” he continued. “Inventory is still falling on an annual basis, and home values are growing well above their historic pace. Although these trends are starting to lose their edge, it is far too soon to call it a buyers’ market.”
The largest percentage of respondents, or 43 percent, believed that the market would shift in favor of buyers in 2020.
August 30, 2018
The 30-year fixed-rate mortgage barely inched up this week, continuing the summer trend of essentially being flat.
While sales and price growth have softened these last few months, this leveling of rates may be helping more buyers reach the market. Purchase mortgage applications this week were once again modestly above year ago levels.
Heading into the fall, the recent slowdown in price appreciation in several markets is good news for the many prospective buyers who were priced out earlier this year. However, despite the economy in the second quarter expanding at its fastest rate in nearly four years, Freddie Mac is still expecting only a slight increase (0.2 percent) in total home sales in 2018 (6.14 million) compared to last year (6.12 million).
Given the strength of the economy, it is possible for home sales to pick up even more before year’s end. The key factor will be if affordably-priced inventory increases enough to continue this recent trend of cooling price appreciation.
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!