Happy Monday, August 6, 2018
School starts soon and I hope all of you with school-aged children have a great year!
Today, our update overviews single-family homes in one of Tampa’s most popular zip codes, New Tampa (Zip Code 33647). We review current real estate market conditions, trends in pricing, and the current levels of supply and demand for the week of August 3, 2018.
Now I’d like to share the most useful and interesting blog posts, articles, and infographics we’ve read this week.
NEW TAMPA, FL — The first day of school in New Tampa is August 10 — and whether you and the kids are looking forward to the new school year or are dreading the end of summer, you’ll want to mark the date on your calendar ASAP. The Hillsborough County School District has released its 2018-2019 calendar for public schools.
The calendar includes important dates such as winter and spring vacations, religious holidays, federal holidays, early dismissals and parent-teacher conferences.
Here is the full list of dates to know for this school year:
- 8/10: First Day of School
- 9/3: No School (Labor Day)
- 10/12: End of Grading Period 1
- 11/12: No School (Veterans Day Observed)
- 11/19-11/23: No School (Thanksgiving Vacation)
- 11/26: Students Return to School
- 12/21: End of Grading Period 2
- 12/24-1/4: No School (Winter Holidays)
- 1/7: Non-Student Day
- 1/21: No School (Martin Luther King Jr. Day)
- 2/8: Non-Student Day (Florida State Fair Day)
- 2/18: No School (Presidents’ Day Holiday)
- 3/4: Non-Student Day (Strawberry Festival)
- 3/18-3/22: No School (Spring Break)
- 3/15: End of Grading Period 3
- 3/25: Non-Student Day
- 4/8: Non-Student Day
- 4/19: Non-Student Day
- 5/27: No School (Memorial Day)
- 5/31: Last Day of School/End of Grading Period 4
From the Blog:
The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting, with a traditional 30-year fixed rate mortgage, in 98 of the 100 largest metro areas in the United States.
In the six years that Trulia has conducted this study, this is the first time that it was cheaper to rent than buy in any of the metropolitan areas.
It’s no surprise, however, that those two metros are San Jose and San Francisco, CA, where median home prices have jumped to over $1 million dollars this year. Home values in San Jose have risen 29% in the last year, while rents have remained relatively unchanged.
For the 98 metros where homeownership wins out, 97 of them show a double-digit advantage when buying. The range is an average of 2.0% less expensive in Honolulu (HI), all the way up to 48.9% in Detroit (MI), and 26.3% nationwide!
Below is a map of the 100 metros that were studied. The darker the blue dot on the metro, the cheaper it is to buy there.
In order to calculate the true cost of renting vs. buying, Trulia includes all assumed renting costs, including one-time costs (like security deposits), and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes, and maintenance) including one-time costs (down payments, closing costs, sale proceeds). They also assume that households stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage. The full methodology is included with the study results here.
Below is a chart created with the data from the last six years of the study, showing the impact of the median home price, rental price, and 30-year fixed rate interest rate used to calculate the ‘cheaper to buy’ metric.
In 2016, when buying was 41.3% less expensive than renting, the average mortgage rate was the driving force behind the difference. Rates this year are the highest they have been in six years which has narrowed the gap, all while home price appreciation has also been driven up by a lack of homes for sale.
Cheryl Young, Trulia’s Chief Economist, had this to say,
“One point deserves emphasizing: The ultra-costly San Francisco Bay Area is not a harbinger for the nation as a whole. While renting may outweigh buying in San Jose and San Francisco, it is unlikely that renting will tip the scales nationally anytime soon.”
Homeownership provides many benefits beyond the financial ones. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.
Colleges aren’t the only ones who are looking for good test scores. Homebuyers are, too.
Living near a good school was so important to 78% of these buyers that they compromised on their home’s features to make that desire a reality, according to a survey released Tuesday by Realtor.com.
The amenity that buyers most frequently gave up for the privilege of living near a better school was a garage (19% of buyers)—even though garages are the most sought-after feature among prospective home buyers, according to another survey from Realtor.com. (Realtor.com is operated by News CorpNWSA, +0.80% subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
Home buyers also chose to forego an updated kitchen (17%), the number of bedrooms they wanted (17%) and outdoor living space (16%).
Buying or selling a home is one of the most important transactions in a person’s life. And at times it is also the most stressful, particularly because the seller’s perceptions often differ greatly from those of the buyer. It is important for each party to try to see both sides of the coin, so that all of the parties are realistic on their path to successful negotiations and, ultimately, a deal.
After representing clients for more than 15 years, I have observed some industry truths that will help us better understand the process of selling a home, whether it’s a multimillion-dollar mansion or a modest family home for a first-time buyer. Over the years I’ve made a few observations of both buyers and sellers and their vast differences in perspectives as we work toward finalizing a sale. Whichever side of the transaction you’re on, it helps to have a full understanding of the big picture.
August 2, 2018
The 30-year fixed-rate mortgage drifted up for the second consecutive week to 4.60 percent.
The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months. Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months.
Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close.
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!