Happy Monday, October 14, 2019
In September 2019, the New Tampa (33647) single-family housing market did not favor sellers or buyers. It was neutral.
For Sale Listings fell 9.7% from September 2018 but rose 1.7% from August 2019. Sold Listings dropped 11.4% year over year and 39.2% month over month. Under Contract Listings jumped 23.6% compared to August of this year and 41.3% compared to September 0f last year.
The Months of Inventory based on Closed Sales increased to 3.9 months, up 2.6% from September 2018.
The Average Sold Price per Square Footage decreased 3.7% compared to August 2019 and 3% compared to September 2018. The Median Sold Price declined 5.1% from this August. The Average Sold Price ticked down 0.8% from August 2018.
The Average Days on Market dropped 3.6% compared to September 2018. The ratio of Sold Price vs. Original List Price of 94%, decreased 1.1% compared to September of last year.
Home Sales (Sold)
In September 2019, 62 single-family homes sold in New Tampa, a 11.4% drop from the 70 sold in September of 2018. It was 39.2% lower than the 102 sales in August 2019.
Current Inventory of Homes (For Sale)
In September 2019, homes listed for sale fell by 26 units or 9.7%. Current inventory increased 1.7% compared to the August 2019.
Homes Under Contract (Pending)
In September 2019, 89 homes were under contract, an increase of 23.6% compared to August 2019 when 72 were pending. It was 41.3% higher than in September 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 September 2019 Average Sold Price per Square Footage of $130 declined 3.7% from $135 in August 2019 and 3% from $134 in September 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 September 2019 of 54 days climbed 1.9% from 53 days in August of this year but fell 3.6% from 56 days in September 2018.
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. September 2019’s Sold Price vs. Original List Price of 94% dropped 2.1% from August 2019 and 1.1% from September 2018.
The Average For Sale Price is Depreciating
The Average For Sale Price in September was $437,000, down 0.9% from $441,000 in September 2018 and 2.9% from $450,000 in August 2019.
The Average Sold Price is Neutral
The Average Sold Price in September was $364,000, up 3.7% from $351,000 in September 2018 and down 0.8% from $367,000 in August of this year.
The Median Sold Price is Neutral
The Median Sold Price in September was $334,000, up 1.5% from $329,000 in September 2018 and down 5.1% from $352,000 in August 2019.
August was a Neutral 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 September 2019 Months of Inventory based on Closed Sales of 3.9 months increased 2.6% compared to last September 2018 and 68.3% compared to August 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 September 2019 Absorption Rate based on Closed Sales of 25.5 fell 1.9% compared to September 2018 and 40.3% compared to August 2019.
Clearwater Jazz Holiday: While its gotten musically far afield of its jazz roots, the weekend brings a strong lineup to Clearwater’s Coachman Park with Boyz II Men headlining Thursday and New Orleans fave Trombone Shorty on Friday. Saturday brings Chicago and Blood, Sweat and Tears, while Alison Krauss headlines Sunday. $20. rutheckerdhall.com
Nightmare on Franklin Street: The Tampa Theatre is shaking up its annual Halloween film festival with two live shows — the popular horror-comedy podcast The Last Podcast on the Left on Friday and Barry Bostwick, the star of The Rocky Horror Picture Show, giving a talk before a screening of the cult classic Saturday at 7 p.m. and midnight. $26-$101. Plus there’s loads of scary films and ghost tours of the historic movie house. Find the lineup at tampatheatre.org.
Music: After four previously canceled or postponed shows in recent years, ZZ Top returns for a 50th anniversary tour with Cheap Trick on Saturday at Tampa’s MidFlorida Amphitheatre. Then on Sunday, country rock titans the Zac Brown Band play MidFlorida as well ($40-$108). On Monday, the Tampa Jazz Club’s Art Blakey Tribute salutes the late jazz drummer and band leader at the USF Concert Hall in Tampa ($20; $10 students). Bea Miller, the 20-year-old pop singer from the U.S. version of the X Factor, plays The Orpheum in Ybor on Wednesday ($17 and up). California punk rockers Face To Face & Lagwagon are teaming up on their latest tour, stopping at the Ritz Ybor on Thursday ($26.50). Halloween season is a good time for the macabre folk songs of Amigo The Devil playing Thursday at Ybor’s Crowbar ($15). Classic Albums Live: Tom Petty Thursday brings a note-for-note replay of Tom Petty & the Heartbreaker’s Damn the Torpedoes for a 40th anniversary celebration at Clearwater’s Bilheimer Capitol Theatre ($35-$50). St. Petersburg College is kicking off its “Jazz on the Lawn” event series on Friday with a Latin Jazz Night at SPC’s Gibbs Campus in St. Petersburg. Award-winning hip-hop artists Young Thug & Machine Gun Kelly play the Yeungling Center Friday ($25.75 and up). Modern reggae talent Iya Terra performs along with Guam’s For Peace Band and Tampa’s own Ries Brothers at Jannus Live on Saturday ($18). Denver-based artist Nick Miller, known professionally as ILLENIUM plays the Yuengling Center on Saturday. The Red Elvises bring their unique blend of Russian folk and American rock to Skipper’s Smokehouse on Saturday ($12-$15).
Comedy: Tennessee comedian Nate Bargatze opened for Jimmy Fallon at the Tampa Theatre in 2013. He’s back in same room on Thursday — only this time, he’s the headliner ($38.50 and up). MadTV’s Anjelah Johnson has a sold-out series of shows Wednesday and Thursday at the Tampa Improv. Heather Land, the Southern comedian known for her viral “I Ain’t Doin It” videos and her sarcastic observational humor, plays the Straz Center’s Ferguson Hall on Thursday ($29.50-$99.50) and YouTube superstar Randy Rainbow brings his popular mix of political humor and song parodies to St. Petersburg’s Mahaffey Theater on Saturday ($37.50 and up).
Pops in the Park: The popular picnic and free concert by the Florida Orchestra will feature film scores, Broadway hits and symphonic favorites. Bring plenty of canned goods for Tampa Bay Harvest. Daniel Black conducts. Saturday at 7 p.m. St. Petersburg’s Vinoy Park and Sunday at 7 p.m. at Tampa’s River Tower Park.
Shine Mural Festival: The annual festival that brings muralists to locations all over St. Petersburg kicks off with a street party on Saturday called Burn, to illuminate the power of art in public spaces. It runs through Oct. 26 and you can find a lineup of talks and parties at shinemuralfest.com.
Tampa Tattoo Arts Convention: More than 400 tattoo artists from around the globe will be at the Tampa Convention Center Friday-Sunday to share their art, see circus side show style acts and see celebs from Ink Master, Tattoo Nightmares and How Far Is Tattoo Far and Paul Teutul Sr. of Orange County Choppers. $20, $40 three days, 11 and younger free.
The Merry Widow: St. Pete Opera takes on Franz Lehar’s operetta Friday through Oct. 21 at the Palladium in St. Petersburg. ($15-$95). stpeteopera.org.
Oktoberfest: Another German party, this time at Tampa Bay Downs racetrack for two weekends starting Friday. There will be a family friendly big top with a carnival, arts and crafts and of course lots of German food, drink, music, dancing and contests like log sawing and stein holding. $5, 12 and younger/military free.
Taste of Latino: Food, Wine and Music Festival: Bask in the scents, sounds, and flavors of Latin foods, wine, art and music. There will also be a Kids Chef Showdown and a Latino Chef Contest. Free; VIP $25-$275 on Eventbrite. 11 a.m.- 5 p.m. Sunday in Ybor’s Centennial Park.
KIDS AND FAMILY
John’s Pass Seafood and Music Festival: The 38th annual festival brings the crowds to Madeira Beach to the fishing industry, showcase live music and a Halloween block party and costume contest on Saturday. It’s free admission and runs Friday-Sunday at John’s Pass Village,
A Night at the Museum: Pirates, soldiers, ghosts and other historical Florida figures come alive in the exhibits to pass out candy to costumed children. Trick-or-treat sessions at 2 and 4:30 p.m. Sunday. $12, $10 children at the Tampa Bay History Center.
St. Petersburg Science Festival and Marine Quest: The annual festival of hands-on exploration of science and technology returns to the waterfront of USF’s St. Petersburg campus and the Florida Fish and Wildlife Research Institute. It’s all free on Saturday starting at 10 a.m.
Open Streets St. Pete: Bayshore Drive will be closed to traffic on Sunday from Al Lang field to Albert Whitted Park to create a bike, pedestrian and skate-friendly zone with live music, yoga sessions, food trucks and appearances by local team mascots from 11 a.m.-4 p.m..
Hillsborough County Fair: The fair opens opens Thursday through Oct. 27 with the usual mix of carnival games, animals, pig racing and more. $7, $5 students, $4 seniors, 5 and younger free. hillsboroughcountyfair.com.
MORE TO EXPLORE
Find date night ideas and things to do with kids at tampabay.com/things-to-do.
It’s common knowledge that your FICO® score plays an important role in the homebuying process. However, many buyers have misconceptions regarding what exactly is required to get the loans they need.
While a recent announcement from CNBC shares that the average national FICO® score has reached an all-time high of 706, the good news for potential buyers is that you don’t need a score that high to qualify for a mortgage. Let’s unpack the credit score myth so you can to become a homeowner sooner than you may think.
With today’s low interest rates, many believe now is a great time to buy – and rightfully so! Fannie Mae recently noted that 58% of Americans surveyed say it is a good time to buy. Similarly, the Q3 2019 HOME Survey by the National Association of Realtors said 63% of people believe now is a good time to buy a home. Unfortunately, fear and misinformation often hold qualified and motivated buyers back from taking the leap into homeownership.
According to the same CNBC article,
“For the first time, the average national credit score has reached 706, according to FICO®, the developer of one of the most commonly used scores by lenders.”
This is great news, as it means Americans are improving their credit scores and building toward a stronger financial future, especially after the market tumbled during the previous decade. With today’s strong economy and increasing wages, many Americans have had the opportunity to improve their credit over the past few years, driving this national average up.
Since Americans with stronger credit are now entering the housing market, we are seeing an increase in the FICO® Score Distribution of Closed Loans (see graph below):But hang on – don’t forget that this does not mean you need a FICO® score over 700 to qualify for a mortgage. Here’s what Experian, the global leader in consumer and business credit reporting, says:
FHA Loan: “FHA loans are ideal for those who have less-than-perfect credit and may not be able to qualify for a conventional mortgage loan. The size of your required down payment for an FHA loan depends on the state of your credit score: If your credit score is between 500 and 579, you must put 10% down. If your credit score is 580 or above, you can put as little as 3.5% down (but you can put down more if you want to).”
Conventional Loan: “It’s possible to get approved for a conforming conventional loan with a credit score as low as 620, although some lenders may look for a score of 660 or better.”
USDA Loan: “While the USDA doesn’t have a set credit score requirement, most lenders offering USDA-guaranteed mortgages require a score of at least 640.”
VA Loan: “As with income levels, lenders set their own minimum credit requirements for VA loan borrowers. Lenders are likely to check credit scores as part of their screening process, and most will set a minimum score, or cutoff, that loan applicants must exceed to be considered.”
As you can see, plenty of loans are granted to buyers with a FICO® score that is lower than the national average. If you’d like to understand the next steps to take when determining your credit score, let’s get together so you can learn more.
Click the graphic above to visit www.teambohannon.com
Based on the current state of the market, trends are shifting in favor of sellers. If you are going to sell, now may be the time to take advantage of the number of buyers who are searching for their dream home.
The best time to sell anything is when demand for that item is high and the supply of that item is limited. The latest Existing-Home Sales Report released by the National Association of Realtors (NAR), reveals that demand for housing continues to be strong, but the supply is struggling to keep pace. With this trend likely continuing throughout 2020, now is a great time to sell your house.
THE EXISTING-HOME SALES REPORT
The most important data revealed in this report was not actually sales. In reality, it was the inventory of homes for sale (supply). The report explained:
- Total housing inventory at the end of August decreased 2.6% to 1.86 million homes available for sale.
- Unsold inventory is lower than the 4.3-month figure recorded in August 2018.
- This represents a 1-month supply at the current sales pace.
According to Lawrence Yun, Chief Economist at NAR,
“Sales are up, but inventory numbers remain low and are thereby pushing up
In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values (see below):As we mentioned before, there is currently a 4.1-month supply of homes on the market, and houses are going under contract fast. The Existing Home Sales Report also shows that 49% of properties were on the market for less than a month when they were sold. In August, properties sold nationally were typically on the market for 31 days. As Yun notes, this should continue,
“As expected, buyers are finding it hard to resist the current rates…The desire to take advantage of these promising conditions is leading more buyers to the market.”
Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market, and supply will fail to catch up with demand if a sizable supply does not enter the market.
If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers who are out there searching for your house to become their dream home.
October 10, 2019
Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground. The fifty-year low in the unemployment rate combined with low mortgage rates has led to increased homebuyer demand this year. Much of this strength is coming from entry-level buyers – the first-time homebuyer share of the loans Freddie Mac purchased in 2019 is forty-six percent, a two-decade high.
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!