Today is the first day of Spring and the real estate season is starting to heat up. The Fed raised interested rates last week and this should eventually cause mortgage rates to go higher. So there is no time like the present to get going if you plan to buy or sell a home. The longer you wait the more competition you will face and likely higher and higher rates which will decrease your buying power.
In this Market Monday we will examine the February performance of one of Tampa’s hottest areas — New Tampa (33647).
Median Sold Price* dropped 2% compared to February 2016. The Numbers of Homes Sold also declined 9% after jumping 43% in January 2017. The Number of Homes sold fell from 65 last February to 59 this February. Some of the decrease is likely attributed to the fact that homebuyers who usually wait until later in the year to buy felt compelled to go ahead and act due to the looming interest rate increase.
The Number of Homes for Sale also trended down (4%) which also dampened the number of sales. Months of Supply, which measures housing inventory, continued to decrease and fell below the 3 months mark, as it hit 2.9 months. The Average Number of Days a home stayed on the market before selling dropped 19% compared to February of 2016 — from 76 to 62 days.
(MEDIAN SOLD PRICE – Median means “in the middle,” meaning that half of the homes sold above the Median Sold Price and half sold below it. For example, if 5 homes sold in a zip code for $200,000, $250,000, $300,000, $400,000 and $800,000, the Median Price would be the one in the middle. In this case, that would be the $300,000 home.In contrast, average selling price would just be the sum of the selling prices of the 5 homes divided by 5, or $330,000. Many real estate statisticians prefer median price as a better indicator of the “typical” price within an area or zip code. Why? It is not affected by “outliers” or homes sold at an extremely high or low price, like the $800,000 home in our example.)
Buyers are ready and willing to buy but are having a tougher time finding homes due to the lower level of houses available. But that is good news for those who want to sell but have not put their homes on the market yet. But as I have said before now is the time to act. It is unlikely that mortgage rates will turn back down if the economy continues to grow. The Fed has also indicated it is likely to raise rates more as the year progresses.
(Want a customized evaluation of your home and neighborhood, based on comparable homes that have sold recently? Call Annette Bohannon at 813-431-2840 and get a FREE detailed, market evaluation of your home or you can get a Free Market Report by following this link.)
Now let’s look at some of the most informative blog posts, articles and infographics we’ve read this week. Enjoy!
It’s information you need to know if you plan to buy or sell your home, as one of the key factors in choosing a new home is access to good quality public school education.
The top scorers for the local school districts are as follows:
- Hernando: Hernando High School
- Hillsborough: Plant High School
- Manatee: State College of Florida Collegiate High School
- Pasco: Gulf High School
- Pinellas: St. Petersburg High School IB Program
- Polk: Chain of Lakes Collegiate High School
- Sarasota: Pine View School
One year in the making, Tampa International’s newest flight expected to add millions to local economy
Delta Airlines will begin the nonstop daily flights from Tampa to Salt Lake City on Dec. 21, when a plane departs from Utah and lands here at approximately 11:41 p.m. The first departure from Tampa to Salt Lake City takes off at 7 a.m. the next day.
“Salt Lake City is one of our largest unserved destinations and we’re pleased to now offer the ease and convenience of nonstop connections to Salt Lake City International Airport,” said Joe Lopano, CEO of Tampa International Airport. “We know this route will be popular among our skiing and adventure-seeking leisure travelers, and likewise, we expect lots of visitors from Utah and surrounding states to come enjoy our beautiful beaches and warm weather.”A new study said the Tampa Bay area was the fifth most popular moving destination in the U.S. in 2016.
From the Blog:
Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.
Advice for Buyers:
It’s a tough market for homebuyers. Prices are high and supply of available homes is low.
And while the Federal Reserve’s rate hike could make home buying more expensive, house hunters shouldn’t start panicking yet.The Fed increased its benchmark interest rate by one-quarter of a percentage point on Wednesday.
A realtor who works with first-time homebuyers reveals a common mistake millennials make when they’re house shopping
“[Young people] are very fearful of making the wrong step and I do think that, in general, there’s this fear of growing up, of making these big decisions, because it means you are officially an adult. And it’s not that scary,” said Bu ll.
One way to reduce the intimidation of shopping for your first home is to narrow your focus. Bull said a common mistake she sees among millennials is getting distracted by the small stuff.
“I try to educate my buyers that it’s not about the stainless steel, it’s not about the granite or marble countertops, you would be surprised at how affordable some of those finishes are to put in,” she said.
Instead, Bull says, you should really be looking at the “infrastructure and big-ticket items … [like] roofs, plumbing, electrical,” especially in areas with older, historic properties, like Boston.
Advice for Sellers
You’ve got a contract on your home for sale—congratulations! But before you pop the cork on the champagne, you’ve got to go through an ordeal that could make or break that sweet deal: a home inspection.
The home inspection is a contingency written into most offers, meaning that if the buyers aren’t happy with the result, they can cancel the sale without losing their earnest money deposit, or reopen negotiations and ask for a price reduction.
So it’s important to prepare yourself and your home for this important step of the process. How? Hey, we’re glad you asked! Let’s start at the beginning.
As expected, the FOMC announced its first rate hike of 2017 and hinted at additional increases throughout the remainder of the year. Although our survey was conducted prior to the Fed’s decision, the release of the February jobs report all but guaranteed a rate hike and boosted the 30-year mortgage rate 9 basis points to 4.30 percent this week. Increasing inflation, continued gains in the labor market and the Fed’s intentions for further rate increases—all three will keep pushing mortgage rates up this year.
- 30-year fixed-rate mortgage (FRM) averaged 4.30 percent with an average 0.5 point for the week ending March 16, 2017, up from last week when it averaged 4.21 percent. A year ago at this time, the 30-year FRM averaged 3.73 percent.
- 15-year FRM this week averaged 3.50 percent with an average 0.5 point, up from last week when it averaged 3.42 percent. A year ago at this time, the 15-year FRM averaged 2.99 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.28 percent this week with an average 0.4 point, up from last week when it averaged 3.23 percent. A year ago, the 5-year ARM averaged 2.93 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Thanks for reading Tampa Market Monday. If you want help buying or selling your home, please get in touch. We have sold over 4,600 homes in the Tampa area and our mission is “to elevate the practice of real estate to an art form — and to deliver a real estate experience that is re-imagined and extraordinary!
Have a Fantastic week!
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