Happy Monday, May 13, 2019
In April 2019, the New Tampa (Zip Code: 33647) housing market favored Sellers.
The number of single-family homes for sale dropped 11.6% from April 2018 and 9.5% from March 2018. Homes Sold fell 20.6% year over year but rose 1% month over month. Homes Under Contract jumped 27.1% compared to April a year ago and 43.8% compared to March of this year.
Months of Inventory came in at 2.6 months, an increase of 13% from April 2018.
The Average Sold Price per Square Footage ticked down 0.8% compared to March but moved up 0.8% compared to last April. The Median Sold Price decreased by 1.8% from March. The Average Sold Price declined by 5.7% from March.
The Average Days on Market leaped 22% compared to April 2018. The Ratio of Sold Price vs. Original List Price of 96% stayed the same as last April.
Home Sales (Sold)
In April 2019, 104 homes sold in New Tampa. That showed a 20.6% decrease from the 131 sold in April of 2018. It was 1% more than the 103 sales in March 2019.
Current Inventory of Homes (For Sale)
In April 2019, 35 or 11.6% fewer homes were listed for sale than in April 2018. Inventory dropped 9.5% compared to March 2019.
Homes Under Contract (Pended)
Homes under contract leaped 43.8% in April compared to March as 174 homes were pending versus 121 last month. Pending home sales rose 21.7% compared to April 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 April 2019 Average Sold Price per Square Footage fell 0.8% to $127. It stood at $128 in March. Average Sold Price per Square Footage ticked up 0.8% from $126 in April of 2018.
The Days on Market Shows Neutral 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 April 2019 was 61, down 10.3% from 68 days in March and up 22% from 50 days in April 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. The April 2019 Sold Price vs. Original List Price of 96% climbed 1.1% from March 2019 and stayed flat compared to April 2018.
The Average For Sale Price is Neutral
The Average For Sale Price in April was $416,000, up 5.6% from $394,000 in April of 2018 and up 1% from $412,000 March.
The Average Sold Price is Appreciating
he Average Sold Price in April was $282,000, down 2.8% from $290,000 in April of 2018 and down 5.7% from $299,000 March.
The Median Sold Price is Appreciating
The Median Sold Price in April was $280,000, up 1.8% from $275,000 in April of 2018 and down 1.8% from $285,000 March.
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
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 April 2019 Absorption Rate of 39 dropped by 10.1% compared to last April but climbed 11.7% compared to March 2018.
When the official groundbreaking for the expansion of the New Tampa Recreation Center (NTRC) was held on April 12, and a gaggle of local dignitaries and preschoolers dressed as construction workers wearing pink hard hats sent shovelfuls of dirt flying through the air, there was probably no one happier than Heather Erickson.
For the City of Tampa’s manager of aquatics, athletics and special facilities, the 7,285-sq.-ft. expansion of the NTRC is a long-awaited dream come true.
As the gatekeeper of the city’s immensely popular and successful gymnastics and dance programs, which currently includes more than 1,200 students at NTRC, Erickson has had to delay the enrollment of more children than she’d care to remember.
The expansion, however, should allow Erickson to admit roughly 300 additional kids into NTRC programs.
“We’re pretty happy,” Erickson said. “This is going to let us do even more than we already do.”
Those attending the groundbreaking included outgoing Tampa Mayor Bob Buckhorn (in perhaps his final official act as mayor), City Council members Luis Viera, Mike Suarez, Harry Cohen and Guido Maniscalco and Tampa Palms resident and activist Tracy Falkowitz.
All offered praise for the results the gymnastics and dance programs have produced, and noted the long road to getting the NTRC expanded.
Buckhorn, who leaves office in a few weeks, acknowledged the struggle finding the full amount needed — $2.6 million in all — for the project in the years following the 2008 recession.
Viera and Falkowitz, along with others in the New Tampa community, however, worked doggedly together to finally convince the city to put — and keep — the rec center expansion in the fiscal year 2018 budget.
“Thanks, particularly to the advocacy of Luis Viera, who was relentless,” Buckhorn said. “He was like a pitbull on my leg to make sure New Tampa was going to be taken care of. And, Tracy was absolutely right, that this journey had gone on too long, and the demands were too great and the quality of the programming was too superb that (why) shouldn’t and couldn’t we expand this to give more kids the opportunity to enjoy the amazing mentorship of our Parks & Recreation, and give New Tampa the amenity that it so rightly deserved. We got it through.”
The NTRC expansion is expected to be completed by February of 2020, which is good news for many on the waiting list of 1,400 — 960 waiting to get into gymnastics, the rest waiting to get into the center’s dance programs.
There are three basic components of the expansion, the first of which is adding a room specifically for children ages 5 and under, who currently share space with older kids in the 12,500-sq.-ft. gymnastics area.
By giving them their own 50’ x 40’ room, it allows for more older students to be added to the program, and also provides more of a focus on the younger pre-schoolers.
Another 50’ x 40’ all-purpose room for dance also will be added.
And lastly, the expansion will include a 1,760-sq.-ft. “training box,” which will offer a wealth of possible training exercises for a variety of sports, like retractable batting cages, and offer small group fitness classes. The new addition to the NTRC also will have more windows so parents and family can watch the gymnastics and dance programs, as well as six new bathrooms.
One of the bathrooms will even have an electromagnetic lock, so it can be open on the weekends for those using the outdoor areas when the NTRC is closed.
When we consider buying an item, we naturally go through a research process prior to making our decision. We ask our friends and family members who have made similar purchases about their experience, we get opinions and insights, and we read reviews online. There’s no difference when considering a home purchase!
Most homebuyers start by listening to the news to hear what is being said about the real estate market. They check with family and friends about their experience. They spend time online reading reviews about their desired neighborhood.
The challenge is that comments from the news and those closest to us can contradict the data and reports. One source says one thing, while another source says something completely different.
“Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn’t stopped them from trying to close on a home…Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession will be better than 2008 for the housing market.”
The report provides more insights from the survey:
- Nearly 30% of the active home shoppers* surveyed expect the next recession to begin sometime in 2020.
- 56% of shoppers believe home prices have hit their peak.
- 41% believe housing will fare better than 2008.
- 45% of home shoppers feel at least slightly more optimistic about homeownership.
- 33% reported no impact on their feelings about homeownership.
Homebuyers are aware and making decisions with their eyes wide-open. As the report mentioned,
“The fact that some [36%] home shoppers expect the next recession to be harder on the housing market than the last recession suggests that they are buying homes with eyes wide-open and very sober, if not slightly pessimistic, views of the housing market.
This is a stark contrast to the years leading up to the last recession when ‘irrational exuberance’ was more common and yet another reason to expect that the next downturn will be very different for the housing market than the last.”
If you are considering buying a home, let’s get together to help you understand our local market and determine if buying a home is the right choice for you now.
*Active home shoppers are those consumers who responded that they plan to purchase their next home in 1 year or less.
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The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up and distressed sales (foreclosures and short sales) have fallen to their lowest point in years. The market will continue to strengthen in 2019.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory! Buyer demand naturally increases during the summer months, but supply has not kept up.
Here are the thoughts of a few industry experts on the subject:
“Further increases in inventory are highly desirable to keep home prices in check, the sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
“There’s a supply-demand mismatch… More inventory is needed at the lower end and a price reduction may be needed at the upper end.”
“Heading into spring, U.S. prices are expected to continue to rise and inventory is expected to continue to increase, but at a slower pace than we’ve seen the last few months as fewer sellers want to contend with this year’s more challenging conditions… A buyer’s experience will vary notably depending on the market and price point they’re targeting.”
If you are thinking of selling, now may be the time! Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price!
May 9, 2019
Investors wary of the current economic situation due to ongoing trade disputes resorted to the bond market, causing the 10-year treasury yield to decrease. A combination of low mortgage rates, a strong job market and modest wage growth should spur homebuyer interest and also serve as an incentive for homeowners looking to refinance.
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!