Happy Tuesday, March 12, 2019
In February 2019, the number of single-family homes for sale in New Tampa (33647) fell 5.3% from February 2018 and 2.3% from January 2019. The number of homes sold dropped 28.3% year over year and 17.4% month over month. The number of homes under contract climbed 30.5% compared to January 2019 and 24.2% compared to the previous February.
The Months of Inventory came in at 5.7 months, up 32.5% from February 2018. The Average Sold Price per Square Footage rose 1.5% compared to January and 2.3% compared to last February. The Median Sold Price increased 3.3% from last month. The Average Sold Price climbed 2.5% from January.
The Average Days on Market increased 79.2% compared to February 2018. The ratio of Sold Price vs. Original List Price was 94%, a decline of 1.1% compared to February a year ago.
Current Inventory of Homes (For Sale)
In February 2019, there were 77 homes for sale, 12 fewer than the 89 for sale in February 2018. That was a 5.3% decline from February 2019 and 2.3% from January 2018.
The Average Sold Price per Square Footage indicates the direction of homes values. The ‘mix’ of high or low-end properties in the market can sometimes skew the Median Sold Price and Average Sold Price. So the Average Sold Price per Square Footage is a more normalized indicator on the trend of property values. . The February 2019 Average Sold Price per Square Footage of $134 was up 1.5% from $132 last month and 2.3% from $131 in February of last year.
The Days on Market Shows an 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 February 2019 was 95, up 23.4% from 77 days last month and 79.2% from 53 days in February of last year.
The Sold/Original List Price Ratio Remains Steady
The Sold Price vs. Original List Price reveals the average amount that sellers agree to come down from 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 February the Sold Price vs. Original List Price of 94% was up 1.1% from last month and down 1.1% from February 2018.
The Average For Sale Price is Appreciating
The Average For Sale Price in February was $470,000, up 1.1% from $465,000 in February of 2018 and 4.9% from $448,000 last month.
The Average Sold Price is Appreciating
The Average Sold Price in February was $372,000, up 6.9% from $348,000 in February of 2018 and 2.5% from $363,000 last month.
The Median Sold Price is Appreciating
The Median Sold Price in February of $304,000 was the same as in February 2018 and up 19.2% from $255,000 in January 2019. The Median Sold Price in February was $348,000, up 7.1% from $325,000 in February 2018 and up 3.3% from $337,000 last month.
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 February 2019, Months of Inventory came in at 5.7 months, an increase of 32.5% compared to last February and 18.7% compared to last month. 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 February 2019 Absorption Rate was 17.6, a decrease of 24.1% compared to February 2019 and 15.4% compared to last month.
Livability released their list of the “Top 100 Best Places to Live in America,” with Tampa scoring high in the rankings at No. 13. It’s the second time Tampa has appeared on the list; it last made the ranking in 2015, coming in then at No. 72.
The study looked at a number of factors, including housing, amenities, education and health care. It also considered affordability, and capped median home values at $250,000.
Researchers said Tampa has all of Florida’s advantages, such as warmer weather and the bay, along with having fewer tourists than Orlando or Miami. According to Livability, that means Tampa can focus more on creating livable places.
“The two-time ‘Top 100 Best Places to Live’ recipient offers museums, attractions, and a thriving restaurant scene as well as good schools and a great hospital system,” the study noted.
Tampa ranked highest of the Florida cities on the list, with Orlando at No. 17, Clearwater at No. 44, Tallahassee at No. 58, West Palm Beach at No. 59, and Gainesville at No. 81.
Coming in first overall for 2019 was Rochester, Minnesota. To see the full rankings, click here.
Every family has a list of important dates. We celebrate birthdays, anniversaries, pet adoptions…and the list goes on. For 64.4 percent of households in the United States, this list includes the day they became a homeowner for the first time!
Why is this date important? Homeownership is not just a roof over your head! It represents shelter, stability, wealth, and pride! For decades, homeownership has been an important part of the American Dream!
However, many question if the next generations see the same benefits of homeownership as their predecessors.
In case we have forgotten, some of those benefits are:
- Educational Achievement: Homeownership has a positive impact on academic achievement, including reading and math performance in chSpring has sprung, and it’s a great time to buy a home! 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 4.4% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year.
Home values will continue to appreciate for years. Waiting 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 came in at 4.41% last week. 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’ that 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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Just like our clocks this weekend, in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale has been holding back the market.
Many potential sellers believe that waiting until Spring is in their best interest. Traditionally, they would have been right.
Buyer demand has seasonality to it. Usually, this falls off in the winter months, especially in areas of the country impacted by arctic conditions.
That hasn’t happened this ye
Heading into the spring buying market, there are strong trends starting to emerge.
The inventory of homes for sale has increased on a year-over-year basis for eight months in a row. Home price appreciation has continued to grow, although at a slower rate. The homeownership rate has reached heights last seen in 2014, with millennials and Generation X leading the way!
Let’s dive a little deeper into some of the recent reports that have been released and what they mean for the spring buying season!
National Association of Realtor’s Existing Home Sales Report
Sales of existing homes were down for the third consecutive month in January. Some of this can be explained by the natural seasonality that the real estate market experiences every year, and some can be explained even further by a lack of homes available for sale on the market.
For the last eight months, the inventory of homes for sale has been higher when compared to the same month the year before. The challenge in the market is the mismatch of the type of home that is available for sale. First-time homebuyers looking for a starter home are often competing with other buyers to stand out, often outbidding each other.
Lawrence Yun, NAR’s Chief Economist, agrees that the market is still experiencing an inventory shortage.
“In particular, the lower end of the market is experiencing a greater shortage, and more home construction is needed.”
The median home price for homes sold in January was $247,500. This is up 2.8% from January 2018 and marks the 83rdconsecutive month of year-over-year gains. The 2.8% growth in home prices represents the smallest year-over-year change since February 2012 but is a welcome change for buyers who had feared being priced out of the market.
Days on the Market
Properties that sold in January were on the market for an average of 49 days with 38% of homes on the market for less than a month.
Yun is positive about how today’s market conditions will help buyers this spring,
“Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
The national Pending Home Sales Index (PHSI) rose 4.6% to 103.2 in January from 98.7 in December. An index score of 100 is considered normal. All four major regions of the country experienced gains in January, with the largest increase coming in the South.
“The PHSI is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.”
Increases in the PHSI often predict increases in the level of home sales in the coming months, which is great news for the housing market leading in to spring! Yun had this to say,
“Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers.”
The housing market in 2019 will require homeowners to list their house at the right price to attract buyers. If interest rates continue to stay low while wages increase, and more inventory comes to market, 2019 could be one of the best years for home sales in recent history.
March 7, 2019
While mortgage rates very modestly rose to 4.41 percent this week, they remain below year-ago levels for the fourth week in a row. In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019. However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring homebuying season.
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 New Year!
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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!