Happy Monday, April 13, 2020
In March 2020, the New Tampa Single-Family Housing Market favored Sellers.
The number of single-family homes for sale dropped 34% from March 2019 and 1.9% from February 2020. Single-family homes sold climbed 21.6% year over year and 55.2% month over month. Homes under contract fell 18.4% compared to this February and 8% compared to the previous March.
The Months of Inventory based on Closed Sales came in at 1.7 months, a 46.6% decline from March 2019. The Average Sold Price per Square Footage increased 2.2% compared to February 2020 and 6.2% compared to March 2019.
The Median Sold Price decreased 4.1% from this February. The Average Sold Price ticked down 0.3% during the same time period. The Average Days on Market fell 22.5% compared to March 2019. The ratio of Sold Price vs. Original List Price of 96% rose 1.1% compared to March of last year.
Home Sales (Sold)
In March 2020, Home Sales jumped 21.6%. In March 2019, 74 single-family homes sold in New Tampa, while 90 sold this March. In February 2020, 58 homes sold in New Tampa.
Current Inventory of Homes (For Sale)
In March 2020, Homes for Sale fell 34% or by 81 single-family homes compared to March 2019. Current inventory dropped 1.9% compared to February 2020.
Homes Under Contract (Pending)
In March 2020, Homes Under Contract in New Tampa fell 18.4% from February 2020 and 8% compared to March 2019.
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 March 2020 Average Sold Price per Square Footage of $138 climbed 2.2% from $135 in February of this year and 6.2% from $130 in March of last year.
The Days on Market Showed Neutral 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 March 2020 of 62 days dropped 19.5% from 77 days in February 2020. It decreased 22.5% from 80 days in March of last year.
The Sold/Original List Price Ratio Remains Steady
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. March’s Sold Price vs. Original List Price of 96% stayed flat compared to February 2020 and rose 1.1% compared to March 2019.
The Average For Sale Price is Neutral
The Average For Sale Price in March was $438,000, down 6.4% from $468,000 in March 2019 and up 0.2% from $437,000 in February 2020.
The Average Sold Price is Neutral
The Average Sold Price in March was $370,000, up 7.2% from $345,000 in March 2019 and down 0.3% from $371,000 February 2020.
The Median Sold Price is Neutral
The Median Sold Price in March was $326,000, up 1.6% from $321,000 in March 2019 and down 4.1% from $340,000 In February 2020.
March 2020 was 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
Months of Inventory based on Closed Sales
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 March 2020 Absorption Rate based on Closed Sales increased 84.3% to 57.3 compared to March 2019. It jumped 57.9% compared to February 2020.
Today’s everyday reality is pretty different than it looked just a few weeks ago. We’re learning how to do a lot of things in new ways, from how we work remotely to how we engage with our friends and neighbors. Almost everything right now is shifting to a virtual format. One of the big changes we’re adapting to is the revisions to the common real estate transaction, which all vary by state and locality. Technology, however, is making it possible for many of us to continue on the quest for homeownership, an essential need for all.
Here’s a look at some of the elements of the process that are changing (at least in the near-term), due to stay-at-home orders and social distancing, and what you may need to know about each one if you’re thinking of buying or selling a home sooner rather than later.
1. Virtual Consultations – Instead of heading into an office, you can meet with real estate and lending professionals through video chat. Whether it’s your first initial needs analysis as a buyer or your listing appointment as a seller, you can still get the process started remotely and create a plan together. Your trusted advisor is still on your side.
2. Home Searches & Virtual Showings – According to theNational Association of Realtors (NAR), the Internet is one of the three most popular information sources buyers use when searching for homes. Your real estate agent can send you listing information and help you request a virtual showing when you’re ready to start looking. This means you can virtually walk through the homes on your wish list while keeping your family safe. As a seller, you can still have virtual open houses and virtual tours too, so as not to miss those buyers looking to find a home right now.
3. Document Signing – Although this is another area that varies by state, today more portions of the transaction are being done digitally. In many areas, your agent or loan officer can set up an account where you can upload all of the required documents and sign electronically right from your computer.
4. Sending Money – Whether you need to pay for an appraisal or submit closing costs, there are options available. Depending on the transaction and local regulations, you may be able to pay by credit card, and most banks will also allow you to wire funds from your account. Sometimes you can send a check by mail, and in some states, a mobile escrow agent will pick up a check from your home.
5. Closing Process – Again, depending on your area, a mobile notary may be able to bring the required documents to your home before the closing. If your state requires an attorney to be present, check with your legal counsel to see what options are available. Also, depending on the title company, some are allowing drive-thru closings, which is similar to doing a transaction at a bank window.
Although these virtual processes are starting to become more widely accepted, it does not mean that this is the way things are going to get done from now on. Under the current circumstances, however, technology is making it possible to continue much of the real estate transaction today.
If you need to move today, technology can help make it happen; there are options available. Let’s touch base today to discuss your situation and our local regulations, so you don’t have to put your real estate plans on hold.
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There’s a ton of real estate information available in the news today and on the Internet. It can be extremely confusing, especially in times of uncertainty like we’re facing right now.
If you’re thinking of buying or selling this year, you need an agent who can help you:
- Make sense of this rapidly evolving housing market
- Navigate everything from virtual showings to new online marketing strategies
- Price your home correctly at the beginning of the selling process
- Determine what to offer on your dream home without paying too much or offending the seller
Dave Ramsey, a financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has a finger on the pulse of the current market will make your buying or selling experience so much easier.
So, how do you identify who truly understands what’s happening right now? How do you know who will take the time to simply and effectively explain what today’s market conditions mean to you and your family?
Check out the agent on social media. What are they posting on Instagram, Facebook, Twitter, and more? Are they using their social media platforms to share relevant, helpful information, or are they just posting memes and recipes? The best agents are committed to educating the consumer so they can feel confident when buying or selling a home.
What agents are posting online will help you determine who meets the criteria Dave Ramsey suggested you look for: someone with the heart of a teacher. Let’s connect today, so you can work with a true trusted real estate professional.
April 9, 2020
While mortgage rates remained flat over the last week, there is room for rates to move down. This year the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point. As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020.
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.
Have a Fantastic week!