Happy Monday, July 15, 2019
In June 2019, the single-family housing market in New Tampa (33647) favored Sellers.
For sale listings fell 14% from June 2018 but rose 14.8% compared to May of this year. Homes sold climbed 17% year over year and 9.3% month over month. Homes under contract dropped 11.4% compared to May 2019 and 11.4% compared to June of last year.
The Months of Inventory declined 25.1% from June 2018, coming in at 2.1 months.
The Average Sold Price per Square Footage increased 2.3% compared to May 2019 and 0.8% compared to June 2018. The Median Sold Price ticked up 0.3% from May of this year. The Average Sold Price rose 1.9% from May 2019.
The Average Days on the Market dropped 7.8% from 64 days (May) to 59 days (June). The ratio of Sold Price vs. Original List Price held steady from June a year ago at 95%.Home Sales (Sold)
In June 2019, 117 homes sold in New Tampa, 17% more than the 100 sold in June 2018. This was also 9.3% more than the 107 sold in May 2019.
Current Inventory of Homes (For Sale)
In June 2019, 39 fewer homes were listed for sale than in June of last year. That showed a 14% drop. June inventory jumped 14.8% compared to May of 2019.
Homes Under Contract (Pending)
Homes under contract decreased 11.4% from 114 in May 2019 and 101 in June of this year. Homes under contract fell 11.4% from June of last year.
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 June 2019 Average Sold Price per Square Footage of $133 rose 2.3% from $130 in May 2019 and 0.8% from $132 in June 2018.
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 June 2019 came in at 59 days, a 7.8% decline from 64 days in May 2019. It stayed flat compared to June 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. This month Sold Price vs. Original List Price of 95% decreased 1% from May 2019. It stayed the same as June 2018.
The Average Sold Price is Appreciating
The Average Sold Price in June of $370,000 stayed the the same as in June 2018. It increased 1.9% from $363,000 in May of this year.
The Median Sold Price is Appreciating
The Median Sold Price in June of $340,000 stayed flat compared to June of last year. It ticked up 0.3% from $339,000 in May 2019.
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
In June 2019, Months of Inventory fell 25.1% to 2.1 months compared to June 2018. It climbed and 5.1% compared to May of this year.
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 June 2019 Absorption Rate increased 36.3% to 48.8 compared to June of last year. It dropped 4.7% and down 4.7% compared to May 2019.
TAMPA, Fla. (FOX 13) – City of Tampa’s ‘New Tampa Rec Center’ has all sorts of things to offer for kids during their summer vacation.
They try to cover all the facets for age groups. They have parent-tot classes, but for summer camps they cater to the four year olds and five years olds, and they have camps for children ages 6 to 12.
There’s also a skateboard park, gymnastics, and soccer. Everything is broken up into skill sets.
Summer camp prices can add up quickly, but the city’s park and recreation department promises they are reasonably priced for large families.
They are also expanding by 8,000 square feet to include dance rooms and even a pre-school gym.
LINK: For more information, head over to City of Tampa’s website.
New Tampa Center
17302 Commerce Park Bouelvard
Tampa, Florida 33647
The housing crisis of the last decade was partially caused by unhealthy levels of mortgage debt. Homeowners were using their homes as ATMs by refinancing and swapping their equity for cash.
When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home). As a result, they walked away. This caused prices to fall even further.
Headlines are again talking about record levels of mortgage debt, making the comparison to the challenges that preceded the housing crash. However, cumulative debt is not an important data point. If we look at the debt as a percentage of disposable personal income, we are at an all-time low.
Here’s a visual representation of mortgage debt as a percent of income:Furthermore, according to a new report from ATTOM Data Solutions, more than 1-in-4 homes with a mortgage have at least 50% equity. The report explains:
“[O]ver 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 834,000 from a year ago to a new high as far back as data is available, Q4 2013.”
Unlike 2008, homeowners have a comfortable level of mortgage debt and are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.
Click the graphic above to visit www.teambohannon.com
Rising home prices coupled with a lack of inventory in today’s market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). However, a FSBO might not be a good idea for the vast majority of sellers.
The top 5 reasons are listed below:
1. Online Strategy for Prospective Purchasers
Recent studies have shown that 95% of buyers search online for a home. In comparison, only 13% use print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home. Do you?
2. Results Come from the Internet
Where did buyers find the home they actually purchased?
- 50% on the Internet
- 28% from a Real Estate Agent
- 7% from a yard sign
- 1% from newspapers
The days of selling your house by putting up a sign and listing it in the paper are long gone. Having a strong Internet strategy is crucial.
3. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
- The buyer who wants the best deal possible
- The buyer’s agent, who solely represents the best interest of the buyer
- The buyer’s attorney (in some parts of the country)
- The home inspection companies, which work for the buyer and will almost always find some problems with the house
- The appraiser, if there is a question of value
4. FSBOing Has Become Increasingly Difficult
The paperwork involved in the process has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 7% over the last 20+ years.
5. You Net More Money When Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, they may actually cost themselves more. One of the main reasons for the price difference at the time of sale is:
“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”
The more buyers that view a home, the greater the chance of a bidding war for the property. The study found the difference in price between comparable homes of size and location is currently at an average of 6%.
Listing on your own leaves you to manage the entire transaction yourself. Why do that when you can hire an agent without additional cost?
Before you decide to take on the challenge of selling your house on your own, let’s get together to discuss your needs.
July 11, 2019
The recent stabilization in mortgage rates reflects modestly improving U.S. economic data and a more accommodative tone from the Federal Reserve to respond to the rising downside economic risk from trade tensions and soft global economic data. On the housing front, the latest weekly purchase application data suggests homebuyer demand continues to rise, which is consistent with the slowly improving real estate data from the last two months.
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!