Happy Monday, September 21, 2020
The New Tampa Single-Family Housing Market Favored Sellers in August 2020!
Summary of Key Stats Year over Year (YoY) and Month over Month (MoM):
More Detailed Analysis and Commentary
Home Sales (Sold)
In August 2020, 96 single-family homes sold in New Tampa, a 5.9% drop from the 102 sold in August 2019 and an 11.1% decline from the 108 sales in July 2020.
Current Inventory of Homes (For Sale)
In August 2020, 145 fewer single-family homes were listed for sale than in August 2019, a decrease of 60.7%. Current for sale inventory fell 2.1% compared to July 2020.
Homes Under Contract (Pending)
In August 2020, homes under contract dropped 14.2% compared to July 2020 but jumped 31.9% compared to August 2019.
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 August 2020 Average Sold Price per Square Footage of $142 stayed flat compared to July of this year. It rose 5.2% from $135 in August of last year.
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 August 2020 of 52 days increased 2% from 51 days in July 2020 but dropped 1.9% from 53 days in August 2019.
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 August 2020 Sold Price vs. Original List Price of 97% fell 1% from July of this year and rose 1% from August of last year.
The Average For Sale Price is Appreciating
The Average For Sale Price in August was $450,000, the same as August 2019 and up 1.4% from $444,000 in July 2020.
The Average Sold Price is Neutral
The Average Sold Price in August was $384,000, up 4.6% from $367,000 in August 2019 and down 1% from $388,000 in July of this year.
The Median Sold Price is Neutral
The Median Sold Price in August was $358,000, up 1.7% from $352,000 in August 2019 and down 2.7% from $368,000 in July 2020.
August 2020 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
The August 2020 Months of Inventory based on Closed Sales of 1 month plunged 55.5% compared to August 2019. It jumped 11.2% compared to this July.
The 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 August 2020 Absorption Rate based on Closed Sales of 102.1 increased 139.2% compared to August a year ago. It fell 9.2% compared to July 2020.
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Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following:
- Housing Demand – Growth in online search activity
- Home Price – Growth in asking prices
- Housing Supply – Growth of new listings
- Pace of Sales – Difference in time-on-market
The index compares the current status “to the January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”
The graph below charts the index by showing how the real estate market started out strong in early 2020, and then dropped dramatically at the beginning of March when the pandemic paused the economy. It also shows the strength of the recovery since the beginning of May.Today, the index stands at its highest point all year, including the time prior to the economic shutdown.
The Momentum Is Still Building
Though there is some evidence that the overall economic recovery may be slowing, the housing market is still gaining momentum. Zillow tracks the number of homes that are put into contract on a weekly basis. Their latest report confirms that buyer demand is continuing to dramatically outpace this same time last year, and the percent increase over last year is growing.Clearly, the housing market is not only outperforming the grim forecasts from earlier this year, but it is also eclipsing the actual success of last year.
Frank Martell, President and CEO of CoreLogic, explains it best:
“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic.”
Whether you’re considering buying or selling, staying on top of the real estate market over the coming months will be essential to your success.
September 17, 2020
Despite the recession, the very low mortgage environment has spurred many first-time homebuyers to jump into the real estate market. In August, first-time homebuyer activity rose 19 percent from July to the highest monthly level ever for Freddie Mac. The first-time homebuyer driven rebound in the housing market has come at a critical time for the economy.
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.