Happy Monday, January 13, 2020
In December 2019, the New Tampa (33647) single-family housing market favored sellers.
Single-Family Homes for Sale fell 14.5% from December 2018 and 17.2% from November 2019. Homes Sold jumped 23.5% year over year and 1.2% month over month. Homes Under Contract rose 6.5% compared to November 2019 and 53.5% compared to December 2018. The Months of Inventory based on Closed Sales was 2.2 months, a 28.6% drop from December 2018.
The Average Sold Price per Square Footage climbed 3.8% compared to November 2019 and 6.3% compared to December 2018. The Median Sold Price increased 1.2% from November 2019. The Average Sold Price decreased 5.4% during the same time period.
The Average Days on Market rose 23.8% compared to December 2018. The ratio of Sold Price vs. Original List Price fell 1.1% to 94% compared to December 2018
Home Sales (Sold)
In December 2019, 84 single-family homes sold, a 23.5% jump from the 68 sold in December of 2018. This was 1.2% higher than the 83 sales in November 2019.
Current Inventory of Homes (For Sale)
In December 2019, 31 or 14.5% fewer single-family homes were listed for sale than in December 2018. Current housing inventory fell 17.2% compared to November 2019.
Homes Under Contract (Pending)
In December 2019, Homes Under Contract increased 6.5% compared to November 2019, as 66 single-family homes were pending versus 62 in November. December’s pending homes sales climbed 53.5% compared to December 2018.
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 December 2019 Average Sold Price per Square Footage of $136 rose 3.8% from $131 in November 2019 and 6.3% from $128 in December 2018.
The Days on Market Shows Upward 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 December 2019 of 78 days jumped 39.3% jump from 56 days in November 2019 and 23.8% from 63 days in December 2018.
The Sold/Original List Price Ratio Falling
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. December’s Sold Price vs. Original List Price of 94% dropped 2.1% from November 2019 and 1.1% from December 2018.
The Average For Sale Price is Depreciating
The Average For Sale Price in December of $412,000 declined 11% from $463,000 in December 2018 and 5.7% from $437,000 in November 2019.
The Average Sold Price is Depreciating
The Average Sold Price in December of $352,000 rose 2.9% from $342,000 in December 2018. It declined 5.4% from $372,000 in November 2019.
The Median Sold Price is Neutral
The Median Sold Price in December of $349,000 climbed 6.1% from $329,000 in December 2018 and 1.2% from $345,000 in November 2019.
December 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 December 2019 Months of Inventory based on Closed Sales of 2.2 months decreased 28.6% compared to December 2018 and 18.8% compared to November 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 December 2019 Absorption Rate based on Closed Sales of 45.9 climbed 44.4% compared to December 2018 and 22.1% compared to November 2019.
From the Blog:
According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.
The good news is, our younger generations are strong believers in homeownership.
According to a Freddie Mac survey,
“The dream of homeownership is alive and well within “Generation Z,” the demographic cohort following Millennials.
Our survey…finds that Gen Z views homeownership as an important goal. They estimate that they will attain this goal by the time they turn 30 years old, three years younger than the current median homebuying age (33).”
Based on this data, those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-20s and early-30s had close to $50,000 left, but traditionally purchased more expensive homes.Although the vast majority of Gen Zers want to own a home and are somewhat confident in their future, “In terms of financial awareness, 65% of Gen Z respondents report that they are not confident in their knowledge of the mortgage process.”
As the numbers show, you’re not alone. If you want to buy this year but you’re not sure where to start the process, let’s get together to help you understand the best steps to take from here.
Click the graphic above to visit www.teambohannon.com
Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research, January 2019 was only 1% behind February for the most monthly views per listing on realtor.com.
So, what does that mean? The busiest season in real estate has just begun.
The same research indicates,
“Historically, April launched the kickoff of the home shopping season as buyers would come out of their winter hibernation looking for their new home. However, the spring shopping season now starts in January for many of the nation’s largest markets.”
With the reality of fewer homes on the market in the winter, and that supply naturally increases as we head to the spring market, waiting for more competition to list in your neighborhood this year might put you behind the curve. Perhaps now is the time to jump into the market.
George Ratiu, Senior Economist at realtor.com says,
“As shoppers modify their strategies for navigating a housing market that has become more competitive due to rising prices and low inventory, the search for a home is beginning earlier and earlier.”
There is a lot of speculation in the market about why the search for a home is shifting to an earlier start. The one thing we do know is if you’re thinking about buying or selling a home this year, the earlier you get started, the better.
Reminder: When should you sell something? When there is less of that item for sale and the greatest number of buyers are in the market. That’s exactly what is happening in real estate right now.
The new spring market for real estate is underway. If you’re considering buying or selling, let’s connect, so you have the advantage in this competitive market.
January 9, 2020
Mortgage rates fell to the lowest level in thirteen weeks, as investors sought the quality and safety of the U.S. Treasury fixed income markets. The drop in mortgage rates, combined with the strong labor market, should propel a continued rise in homebuyer demand.
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!