Happy Monday, April 9, 2018
Hope everyone had a great weekend. Today, we will review how the New Tampa housing market did in March 2018. This should give all those who plan to buy or sell some perspective on how to proceed in one of the busiest seasons for buying and selling homes.
In March 2018, 2 fewer New Tampa single-family homes sold compared to March 2017. In total, 86 homes sold, 2% less than in 2017 when 88 homes sold. The number of homes for sale declined more — 16% — from 458 (March 2017) to 386 (March 2018). The number of New Properties listed for sale also fell 4% — from 140 March a year ago to 134 this March.
Months Supply of Inventory, which measures how fast the current inventory of homes will be depleted if they sell at the present rate plunged 31% compared to March 2017. This March, there where 1.9 months of New Tampa homes, while a year ago that inventory stood at 2.8 months. The Average Days a Home Stayed on the Market dropped too. In March 2017, New Tampa homes stayed on the market an average of 64 days, but that number was down to 54 days (or 15%).
As expected, prices increased due to the lack of supply. Median Sold Price, which shows the price half the homes sold for, rose 5% (or $12,250) — from $301,500 in March 2017 to $313,750 in February 2018. The Median For Sale Price of homes jumped 5% or $17,500. In March 2017, the median for sale price stood at $339,450, but in March 2018 it hit $356,950.
As the real estate market enters into its peak buying and selling season, the trends that have affected the market should continue and increase. That means a tight supply of inventory will lead buyers to pay more than they typically would, which will cause prices to go up. This is a positive trend for sellers and those planning to sell soon, but it could mean added costs for buyers. Buyers also face rising mortgage rates, but that does not mean buyers should wait. This is still likely to be a better time to buy than any time over the next year or so. Just as we’ve seen over the last year, inventory shortages may continue and interest rates should certainly be higher than they are at this juncture. So waiting may just cost buyers more.
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.
From the Blog:
Why are home prices still rising? It is a simple answer. There are more purchasers in the market right now than there are available homes for them to buy. This is an example of the theory of “supply and demand” which is defined as:
“the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”
When demand exceeds supply, prices go up. This is currently happening in the residential real estate market.
Here are the numbers for supply and demand as compared to last year for the last three months (March numbers are not yet available):
In each of the last three months, demand (buyer traffic) has increased as compared to last year while supply (number of available listings) has decreased. If this situation persists, home values will continue to increase.
The reason home prices are still rising is because there are many purchasers looking to buy, but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.
This spring home-buying season should be a coming-out party for Millennials, many of whom are finally ready to make a purchase after hunkering down for years in their parents’ basements or expensive apartments.
The only problem: Much of the food at the party is gone, and what’s left is priced like caviar.
Although solid job and income growth is emboldening many prospective home buyers, record low housing supplies are driving up prices and curbing sales, especially for Millennials looking to buy starter homes.
“For home buyers, this is shaping up to be one of the most difficult years in recent memory,” says Ralph McLaughlin, chief economist of Veritas Urbis Economics, which studies the housing market.
For sellers, it will be a standout spring that brings big profits, unless those sellers themselves are looking to buy a larger home in the same metro area. “It’s going to have the feel of a hot market,” marked by multiple offers and bidding wars, says Lawrence Yun, chief economist of the National Association of Realtors (NAR).
Spring has officially arrived, but U.S. home sellers considering listing soon in order to capitalize on the impending spring home shopping season should consider waiting at least a few weeks more in order to both maximize their sale price and speed up the process.
Nationwide, the best two-week window for home sellers is the first half of May – U.S. homes listed in the May 1-15 period generally sell almost two weeks faster than the average listing in the year, and command a final price $2,400 more, on average, than listing at other times. The first half of May was the best time to list in 14 of the 24 large markets analyzed by Zillow.
The start to the 2018 spring selling season has been characterized by an acute shortage of homes for sale, meaning a large number of home shoppers will likely be unable to find the right home to buy in the early weeks of spring. As they linger later into the season, these buyers may end up spending more than they intended as they get wrapped up in competition and/or rush to conclude a deal before the summer months. This means late-spring listers can capture these perhaps frustrated buyers more quickly, and earn an additional premium.
Home buyers are busting budgets — and in some cases selling things they love — to snag their dream houses.
A third of home buyers blew through the upper limit of what they planned to spend, topping that cap by an average $16,510, according to a Owners.com survey of 1,214 Americans who purchased a house within the last four years. The survey was conducted Jan. 31 to Feb. 8.
The main reason? Price. Price. Price.
“Clearly, we’re in an environment of rising prices,” especially for starter homes, says Daniel Maloney, national head of sales for Owners.com, a real estate brokerage. Many houses on the market are drawing multiple offers, forcing buyers to bid up.
April 5, 2018
After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week. Mortgage rates followed and fell for the second consecutive week; the U.S. weekly average 30-year fixed mortgage was 4.4 percent in our survey this week. Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor marking is helping home purchase demand weather modestly higher rates. The Mortgage Bankers Association reported in their latest Weekly Mortgage Applications Survey that the Purchase Index was up 5 percent from a year ago indicating that this spring is on track for a modest expansion in purchase mortgage 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!