Happy Monday, June 11, 2018
Today, let’s find out how the New Tampa housing market fared in May 2018. Generally speaking, home sales rose a little compared to last May as housing demand continued to outpace supply. As a result, prices climbed higher than a year ago. Now let’s look more closely at the data.
In May 2018, 2 more New Tampa single-family homes sold compared to May 2017. In total, 108 homes sold, 2% more than in 2017 when 106 homes sold. However, this was 30% more than last month when 83 homes sold in New Tampa. The number of homes for sale dropped 22% — from 511 (May 2017) to 399 (May 2018). That’s 112 fewer homes for sale than last May and 9 more than a month ago. The number of New Properties listed for sale also fell 17% or 28 homes — from 162 May a year ago to 134 this May. By comparison, last month 128 homes came onto the New Tampa market.
Months Supply of Inventory, which measures how fast the current inventory of homes will run out if homes sell at the current rate, dropped 34% compared to May 2017. This May 2.6 Months of Supply of New Tampa homes were on the market, while a year ago inventory levels stood at 3.9 months. This inventory measure was slightly higher than last month when it hit 2.5 months. The Average Days a Home Stayed on the Market declined 3% — from 45 days in May 2017 to 44 days in May 2018.
The Median Sold Price, which shows the price half the homes sold for, climbed 6% (or $16,750) — from $295,750 in May 2017 to $312,500 in May 2018. The Median For Sale Price of homes jumped 7% or $24,500. In May 2017, the median for sale price stood at $340,000 but in May 2018 it rose to $364,500.
As spring turns to summer, the prime homebuying and selling season will be in full swing. So you still have time to sell your home when buyer demand is at its peak, but you need to start the process now. With higher interest rates looming on the horizon, many buyers want to find a house before the end of summer.
Here’s some useful and interesting information we’ve run across this week. There’s something for everyone so be sure to check it out.
Father’s Day: Sunday is the day to celebrate the big guy. Take him out to Beach, Brews and BBQ at the Sirata Beach Resort on St. Pete Beach ($12.95-$19.95, sirata.com). If he’s a car buff, he’ll love the Tampa Bay Automobile Museum (3301 Gateway Centre Blvd., Pinellas Park), where he’ll get in free with the purchase of an additional ticket at regular admission ($8).
Sunshine State Clusters: See thousands of dogs in all breeds compete in showmanship, obedience and rally from Wednesday-Sunday at the Florida State Fairgrounds in Tampa. $5, children free; $6 parking.floridastatefair.com.
Summer Circus Spectacular: The annual summer shows from Sarasota’s Circus Arts Conservatory brings Ringling veterans to the stage of the Historic Asolo Theatre, with preview performances beginning Tuesday, opening night on Saturday ($50). Runs through the end of July. $12-$16. ringling.org.
Music: Former Creed frontman Scott Stapp plays Clearwater’s Capitol Theatre tonight ($35.50-$60). Tuesday, British duo Royal Blood rock St. Pete’s Jannus Live ($25). Thursday, enjoy an acoustic performance from Andrew McMahon in the Wilderness at the Ritz Ybor ($30.50-$50). Grammy Award-winning pop-rock superstars Maroon 5 hit the Amalie Arena on Saturday ($45.75-$145.75). Sunday, take Dad to the MidFlorida Credit Union Amphitheatre when Styx, Joan Jett and the Blackhearts and Tesla co-headline ($29.50-$350).
The Illusionists: Live From Broadway: A group of five magicians perform a range of styles from escapism to comedic magic at Tampa’s Straz Center for the Performing Arts, on Saturday. $35 and up. strazcenter.org.
Mr. Rogers Neighborhood Block Party: Tampa Theatre celebrates the Mr. Rogers documentary, Won’t You Be My Neighbor, with a screening and block party on Tampa’s Franklin Street with food samples and art exhibits. Free (party); $9-$11 (movie). tampatheatre.org.
Kids and Family
Regal Summer Movie Express: Select Regal theaters will show kids movies for $1 every Tuesday and Wednesday throughout the summer. This week it’s Ice Age: Collision Courseand Despicable Me. regmovies.com.
From the Blog:
- Historically, the choice between renting or buying a home has been a tough decision.
- Looking at the percentage of income needed to rent a median-priced home today (28.8%) vs. the percentage needed to buy a median-priced home (17.1%), the choice becomes obvious.
- Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!
Here are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insights reports that home prices have appreciated by 7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% 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 mortgage have increased by half a percentage point already in 2018 to around 4.5%. 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 that rates will increase by nearly a full percentage point 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
There are some renters who 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?
Look at 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, you want your family to be safer, or you just want to have control over renovations, maybe now is 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.
Young Americans are hitting more and more homeownership roadblocks: crippling student debt, escalating home prices, surging mortgage rates and a scarcity of listings.
So why have they gone on a buying binge?
First-time buyers accounted for 46 percent of new mortgages (excluding refinancings) that Freddie Mac backed in the first quarter, their biggest quarterly share in data going back to 2012, according to the company. Meanwhile, the National Association of Realtors puts the median age of first-timers in the U.S. at 32.
In other words, it appears that young people, helped by easier credit and an improving job market, are acting fast as rents rise and a surge in property values and borrowing costs threatens to price them out of homeownership.
Some factors that determine what a house is worth are out of your control, like its location and the popularity of that market. But you can keep up with repairs and make smart improvements, both proven ways to increase home value.
When thinking about how to increase home value, root your expectations in reality. Updates rarely recoup 100% of their cost, but they can make your family more comfortable and even help your home sell faster.
Whether you want to build equity faster or get top dollar when you sell, use the tips below to raise the value of your home.
June 7, 2018
Mortgage rates dipped for the second consecutive week.
Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week.
Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.
While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.
Have a Fantastic Week!
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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!