Happy Monday, June 10, 2019
In May 2019, the single-family housing market favored Sellers.
Homes For Sale dropped 18.4% from May 2018 and 2.8% from April 2019. Sold Homes decreased 0.9% year over year but increased 54.4% month over month. Homes Under Contract climbed 6% compared to April 2019 and 29.2% compared to the previous May. Months of Inventory came in at 2 months, a 16.6% decline from May a year ago.
The Average Sold Price per Square Footage ticked up 0.8% compared to April 2019 and 3.2% compared to May 2018. The Median Sold Price rose 3.7% from April. The Average Sold Price increased 6.7% from April.
The Average Days on Market fell 3.2% compared to May 2019. The ratio of Sold Price vs. Original List Price stayed at 96%, the same as May 2018.
Home Sales (Sold)
In May 2019, 105 single-family homes sold, a 0.9% decline from the 106 sold in May of 2018. It was 54.4% more than the 68 sales in April 2019.
Current Inventory of Homes (For Sale)
In May 2019, for sale listings dropped by 47 homes or 18.4% from May 2018. The number of homes for sale fell 2.8% compared to April.
Homes Under Contract (Pending)
There was an increase of 6% in the pended properties In May 2019, 124 homes were under contact. That was 6% lower than in April of this year, but 29.2% higher than May 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 May 2019 Average Sold Price per Square Footage of $130 was 0.8% higher than in April 2019 and 3.2% than in May of last year.
The Days on Market Shows Downward 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 May 2019 was 65, the same as April of this year. It rose 3.2% from 63 days in May 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. his month Sold Price vs. Original List Price of 96% was the same as April 2019 and May 2018
The Average For Sale Price is Neutral
The Average For Sale Price in May was $454,000, up 3.2% from $440,000 in May 2018 and down 3.6% from $471,000 in April 2019.
The Average Sold Price is Neutral
he Average Sold Price in May was $364,000, up 9.3% from $333,000 in May 2018 and up 6.7% from $341,000 In April 2019.
The Median Sold Price is Neutral
The Median Sold Price in May was $335,000, up 7.4% from $312,000 in May 2018 and up 3.7% from $323,000 In April.
May 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
In May 2019, Months of Inventory hit 2 months, a decline of 16.6% compared to May 2018. It dropped 38% compared to April 2018.
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 May 2019 Absorption Rate based on Closed Sales was 50.2, a jump of 21.3% compared to May 2018 and 58.8% compared to April 2019.
TAMPA, Fla.—This Fourth of July, check out Tampa’s newest tradition, Boom by the Bay. The family-friendly event will feature live entertainment, activities and four firework displays.
Mayor Jane Castor made the announcement on social media highlighting fireworks displays, family-friendly activities and live music along two and a half miles of the Riverwalk.
The Independence Day celebration will be spread out across the following locations from 4 p.m. to 9:30 p.m.:
- Waterworks Park and Armature Works
- Julian B Lane Riverfront Park
- The Tampa Convention Center and The Sail
- Sparkman Wharf
More information about the event will be available in the coming weeks. To stay up to date on Boom by the Bay, check out the Facebook event page.
Mayor Castor’s spokesperson tells ABC Action News sponsors are funding Tampa’s newest July 4th tradition.
Here are four reasons to consider buying today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 3.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.
Home values will continue to appreciate. Waiting may no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage have started to level off around 4.3%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You Are Paying a Mortgage
Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
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If you are a “baby boomer” (born between 1946 and 1964), you may be thinking about selling your current home. Your children may have finally moved out. Your large, four-bedroom house with three bathrooms no longer fits the bill. Taxes are too high. Utilities are too expensive. Cleaning and repair are too difficult. You may be ready to move into a home that better fits your current lifestyle. Many fellow boomers have already made the move you may be considering.
The National Association of Realtors recently released their 2019 Home Buyer and Seller Generational Report. The report revealed many interesting tidbits about both categories of baby boomers: younger boomers (ages 54 to 63) and older boomers (64 to72). Here are a few of the more interesting topics.
Percentage of Buyers who Looked Online First
- All Buyers: 44%
- Younger Boomers: 46%
- Older Boomers: 44%
Where Boomers Found the Home They Purchased
The two major ways buyers found the home they purchased:
- All buyers: 50% on the internet, 28% through a real estate agent
- Younger Boomers: 46% on the internet, 33% through a real estate agent
- Older Boomers: 36% on the internet, 35% through a real estate agent
Distance Seller Moved
The distance between the home they purchased and the home they recently sold was much greater for boomers than the average seller.
- All sellers: 20 miles
- Younger Boomers: 27 miles
- Older Boomers: 50 miles
Tenure in Previous Home of Seller
The percentage of older boomers who lived in their previous home for more than 20 years was almost twice the amount of the average seller.
- All sellers: 16%
- Younger Boomers: 20%
- Older Boomers: 31%
Primary Reason to Sell their Previous Home
- Want to move closer to friends or family
- Home too large
View of Homeownership as a Financial Investment
- 83% of Younger Boomers see homeownership as a good investment
- 82% of Older Boomers see homeownership as a good investment
If you are a boomer and thinking about selling, now might be the time to contact an agent to help determine your options.
June 6, 2019
While the drop in mortgage rates is a good opportunity for consumers to save on their mortgage payment, our research indicates that there can be a wide dispersion among mortgage rate offers. By shopping around and getting a single additional mortgage rate quote, a borrower can save an average of $1,500. These low rates are also good news for current homeowners. With rates dipping below four percent, there are over $2 trillion of outstanding conforming conventional mortgages eligible to be refinanced – meaning the majority of what was originated in 2018 is now eligible.
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!