Happy Monday, April 8, 2019
In March 2019, the New Tampa (Zip Code: 33647) housing market started to favor Sellers again.
The number of single-family homes for sale listings fell 3% from March 2018 but rose 10.1% from February 2019. The number of homes sold dropped 10.3% year over year but climbed 55.2% month over month. The number of homes under contract jumped 40.8% compared to February and declined 12.1% compared to March 2018. The Months of Inventory came in at 2.8 months, up 7.6% from the previous March.
The Average Sold Price per Square Footage ticked up 0.8% compared to last March and last month. The Median Sold Price increased 11.3% from February. The Average Sold Price rose 2.7% from last month. The Average Days on Market showed a neutral trend, climbing 29.6% compared to March 2018. The ratio of Sold Price vs. Original List Price was 95%, a 1% decline compared to March 2018.
Home Sales (Sold)
In March, 104 homes sold in New Tampa. That was 10.3% lower than the 116 sold in March of 2018 and 55.2% higher than the 67 sales last month.
Current Inventory of Homes (For Sale)
In March, 9 fewer homes were listed for sale than in March of last year. The inventory of homes for sale jumped 10.1% compared to the last month.
Property Under Contract (Pended)
Home under contract leaped 40.8% in March compared to February as 138 homes were pending versus 98 last month. Pending home sales dropped 12.1% compared to March a year ago.
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 2019 Average Sold Price per Square Footage of $128 ticked up 0.8% or $1 from last month ($127) and last March ($127).
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 2019 was 70, down 11.4% from 79 days in February and up 29.6% from 54 days in March 2018.
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. In March, the Sold Price vs. Original List Price of 95% was 1.1% higher than last month and 1% lower than March of last year.
The Average For Sale Price is Neutral
The Average For Sale Price in March was $412,000, up 5.1% from $392,000 in March of 2018 and down 0.2% from $413,000 in February.
The Average Sold Price is Appreciating
The Average Sold Price in March was $299,000, up 3.5% from $289,000 in March of 2018 and 2.7% from $291,000 in February.
The Median Sold Price is Appreciating
The Median Sold Price in March was $285,000, up 1.8% from $280,000 in March of 2018 and 11.3% from $256,000 in February.
March 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
Months of Inventory based on Closed Sales
The March 2019 Months of Inventory of 2.8 months climbed 7.6% compared to March 2018 but fell 30% compared February 2019.
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 2019 Absorption Rate was 35.3, a decrease of 7.6% compared to last March and an increase of 41.2% compared to last month.
John Tsangarinos was the first employee at Precision Overhead Garage Door when it opened its doors 18 years ago.
Tsangarinos, a senior tech and training manager, now sometimes gets stopped at Walmart by people who recognize him from the TV commercials for the growing company. He said the company’s success today owes at least in part to showing employees they are valued.
“It really is employees first,” Tsangarinos said.
Precision Overhead Garage Door is one of 23 companies to make Tampa Bay Times Top Workplaces list this year for the first time. It ranked 21st for small size companies.
The new companies this year range from small private companies like Precision and two nonprofit schools to larger chains such as Checkers and public companies that include information systems defense contractor CACI International, with more than 500 employees.
Tsangarinos said he has watched as Precision grew from him and the former owner fixing garage doors with two trucks to the $20 million operation it is today, with about 75 employees and a fleet of 70 vehicles that travel the bay area. In 2007, the company was bought by Jim Rapp, who employees credit with fostering a culture that shows it cares about employees.
“Jim refers to himself as ‘the janitor,’ who’s there to clean up messes, but the employees come up with the policies,” Tsangarinos said. “We feel like a family.”
Door design manager Michele Ferris said that employee morale translates to better customer service.
“It feels less like a job and work when you really enjoy the company you work for,” she said.
Rapp turned an extra warehouse into a game room with a pool table and arcade games lining the walls, which employees and their families are welcome to use.
“We have a lot of young employees trying to support young families,” he said. “We want them to feel safe and create a community.”
Other new companies that made the list also credit employee morale as a key to success.
Thomas Butler, chief estimator of Burgess Civil, a Tampa-based contracting company and first-time Times Top Workplace, said employees have left bigger firms because they feel they have more autonomy.
Sean Strickler, West Florida division president of Pulte Group, said he strives to make the Atlanta-based home construction company with a staff of 129 “a place employees want to work at,” something he said the company’s founder tried to instill within each division.
“(He) used to say people are our biggest assets,” he said. “People can copy our floor plans … but people can’t copy our people.”
The company participates in a Gallup survey that seeks feedback from employees, and each employee is given a personal development plan to know if their careers are on track. The company also has its own kickball league.
Power Home Remodeling Group, which has 108 employees, takes all of its employees and their significant others on an annual trip to Mexico. Michael McEvoy, regional vice president of marketing, said the company also started initiatives to focus on hiring a more diverse workforce base for an industry that he said is typically thought of as male-dominated.
“When you work in sales and home remodeling, both are high-pressure, difficult jobs,” he said. “But the company invests in having great culture and great camaraderie.”
Here are the companies that are ranked as a Tampa Bay Times Top Workplace for the first time:
• CACI International Inc.
• HCA West Florida – South Bay Hospital
• The Oaks Of Clearwater
• EVO Payments International
• Checkers Drive In Restaurants, Inc.
• Ceridian HCM
• Engel & Völkers
• Century 21 Jim White & Associates
• Power Home Remodeling Group
• Espiritu Santo Catholic School
• Energy Professionals, LLC
• Care Team Inc.
• Inside Sales Solutions Inc.
• Spatial Networks
• Precision Garage Door of Tampa Bay
• MGE: Management Experts, Inc.
• Burgess Civil, LLC
• Northside Christian School
• Skoda Minotti
• Halfaker and Associates
• ReedTMS Logistics
Year Founded: 2014
What it does: Construction
Revenues: $13 million
Local employees: 57
Rank: 24, small businesses
Power Home Remodeling Group
Year Founded: 1992
Headquarters: Chester, PA
What it does: Home Remodeling
Revenues: $520 million
Local employees: 108
Rank: 5, small businesses
In every area of the country, homes that are priced at the top 25% of the price range for that area are considered to be Premium Homes. In today’s real estate market there are deals to be had at the higher end! This is great news for homeowners who want to upgrade from their current house and move-up to a premium home.
Much of the demand for housing over the past couple years has come from first-time buyers looking for their starter home, which means that many of the more expensive homes that have been listed for sale have not seen as much interest.
This mismatch in demand and inventory has created a Buyer’s Market in the luxury and premium home markets according to the ILHM’s latest Luxury Report. For the purpose of the report, a luxury home is defined as one that costs $1 million or more.
“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”
The authors of the report were quick to point out that the current conditions at the higher end of the market are no cause for concern,
“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”
Luxury can mean different things to different people. It could mean a secluded home with a ton of property for privacy to one person, or a penthouse in the center of it all for someone else. Knowing what characteristics you are looking for in a premium home and what luxury means to you will help your agent find your dream home.
If you are debating upgrading your current house to a premium or luxury home, now is the time!
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The Housing Market has been a hot-topic in the news lately. Depending on which media outlet you watch, it can start to be a bit confusing to understand what’s really going on with interest rates and home prices!
The best way to show what’s really going on in today’s real estate market is to go straight to the data! We put together the following three graphs along with a quote from Chief Economists that have their finger on the pulse of what each graph illustrates.
“The real estate market is thawing in response to the sustained decline in mortgage rates and rebound in consumer confidence – two of the most important drivers of home sales. Rising sales demand coupled with more inventory than previous spring seasons suggests that the housing market is in the early stages of regaining momentum.” – Sam Khater, Chief Economist at Freddie Mac
“A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound.” – Lawrence Yun, Chief Economist at NAR
“Price growth has been too strong for several years, fueled in part by abnormally low interest rates. A mild deceleration in home sales and Home Price Index growth is actually healthy, because it will calm excessive price growth — which has pushed many markets, particularly in the West, into overvalued territory.” – Ralph DeFranco, Global Chief Economist at Arch Capital Services Inc.
These three graphs indicate good news for the spring housing market! Interest rates are low, income is rising, and home prices have experienced mild deceleration over the last 9 months. If you are considering buying a home or selling your house, let’s get together to chat about our market!
April 4, 2019
Purchase mortgage application demand saw the second highest weekly increase over the last year and thanks to a spike in refinancing activity, overall mortgage demand rose to the highest level since the fall of 2016. While the housing market has faced many head winds the last few months, it sailed through the turbulence to calmer seas with demand buttressed by a strong labor market and low mortgage rates. The benefits of the decline in mortgage rates that we’ve seen this year will continue to unfold over the next few months due to the lag from changes in mortgage rates to market sentiment and ultimately home sales.
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!