Happy Monday, November 12, 2018
First, I’d like to thank all those who have served or are serving in the military. We’re grateful for the sacrifices you make and have made for us.
Now, let’s take a look at how the New Tampa real estate market fared in October.
For Sale Listings jumped 15.2% in October 2018 compared to October 2017, but fell 7.1% from September 2018. The Number of Homes Sold in New Tampa climbed 18.8% year over year and 8.6% month over month. The Number of Homes Under Contract rose 26.6% compared to last month and 14.1% compared to last October. The Months of Inventory based on Closed Sales hit 3.3 months, a 2.9% decline from October 2017.
The Average Sold Price per Square Foot dropped 5.2% compared to September 2018, but held steady compared to October 2018. The Median Sold Price (the price half the home sold for) decreased 0.9% from last month. The Average Sold Price also ticked down 0.6% from September 2018.
The Average Days on Market showed an upward trend, increasing 16.4% compared to October 2018. The ratio of Sold Price vs. Original List Price came in at 95%, a decrease of 2.1% compared to last October.
In October 76 single-family homes sold. That was 18.8% more than the 64 sold in September 2018 and 8.6% more than the 70 sales last October.
Current Inventory (For Sale)
In October 15.2% or 33 more homes were for sale than in October of 2018. That was a 7.1% drop from a month ago.
Homes Under Contract (Pending)
The number of homes under contract jumped 26.6% compared to September 2018, as 81 homes were pending versus 64 last month. Homes under contract rose 14.1% from October 2017.
The Average Sold Price per Square Foot is Neutral*
In October 2018 Average Sold Price per Square Foot was $127. This was down 5.2% from $134 last month and the same as October of last year. *
*Based on 6 month trend – Appreciating/Depreciating/Neutral
The Days on Market Shows Upward Trend
The average Days on Market (DOM) shows how many days the average property 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 October 2018 was 64, up 14.3% from 56 days last month and up 16.4% from 55 days in October of last year.
* Based on 6 month trend – Upward/Downward/Neutral
The Sold/Original List Price Ratio Remains Steady
The Sold/Original List Price Ratio is falling based on a 6-month trend. The Sold Price vs. Original List Price reveals the average amount that sellers agree to decrease their original list price. The lower the ratio falls below 100% the more of a Buyer’s market exists, while a ratio at or above 100% indicates more of a Seller’s market. In October 2018, the ratio came in at 95%. This was the same as September and a decline of 2.1% from October 2017.
The Average For Sale Price is Neutral*
The Average For Sale Price in October was $447,000, down 5.9% from $475,000 in October of 2017 and up 1.4% from $441,000 last month.
The Average Sold Price is Neutral*
The Average Sold Price in October was $349,000, up 1.7% from $343,000 in October of 2017 and down 0.6% from $351,000 last month.
The Median Sold Price is Neutral*
The Median Sold Price in October was $326,000, up 1.2% from $322,000 in October of 2017 and down 0.9% from $329,000 last month.
*Based on 6-month trend
It’s 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 October 2018 Months of Inventory dropped to 3.3 months or 2.9% lower than last year and 13% lower than last month.
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 October 2018 Absorption Rate was 30.4, 3.1% higher than a year ago and 16.9% higher than last month.
Restaurants, coffeehouses and eateries across the nation have come up with all kinds of Veterans Day specials — free or discounted meals, drinks and treats — for veterans, retired and active-duty military personnel and, in some cases, first responders to thank them for their service.
Veterans Day is Sunday, Nov. 11, but the holiday is observed on Monday, Nov. 12. Some of the special deals are already in place. In most cases, proof of military service is required
Here are some of the deals:
From the Blog:
Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership: Down Payment, Credit, and Affordability,” which revealed that,
“Consumers often think they need to put more money down to purchase a home than is actually required. In a 2017 survey, 68% of renters cited saving for a down payment as an obstacle to homeownership. Thirty-nine percent of renters believe that more than 20% is needed for a down payment and many renters are unaware of low–down payment programs.”
Myth #1: “I Need a 20% Down Payment”
Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:
“Most potential homebuyers are largely unaware that there are low-down payment and no-down payment assistance programs available at the local, state, and federal levels to help eligible borrowers secure an affordable down payment.”
These numbers do not differ much between non-owners and homeowners. For example, “30% of homeowners and 39% of renters believe that you need more than 20 percent for a down payment.”
While many believe that they need at least 20% down to buy their dream homes, they do not realize that there are programs available which allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.
Myth #2: “I Need a 780 FICO® Score or Higher to Buy”
Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.
Many Americans believe a ‘good’ credit score is 780 or higher.
To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.
As you can see in the chart above, 51.7% of approved mortgages had a credit score of 600-749.
Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.
November 8, 2018
The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven year high of 4.94 percent – up 11 basis points from last week.
Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington. The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.
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 New Year!
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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!