Happy Monday, October 8, 2018
Hope you enjoyed your weekend.
Today let’s take a look at current real estate market conditions in Wesley Chapel.
Median List Price is a key statistics for homebuyers and sellers. It shows the price above and below which half of the sellers in Wesley Chapel have listed their homes for sale. Currently, the price is $337,095. The Market Action Index indicates if buyers or sellers have an advantage in Wesley Chapel. It is now at 35, a little lower than last month’s 36. This means the market favors sellers a little more than buyers. If the Index slips below 30, it indicates the market has swung into the buyers favor. The higher the MAI goes, the more prices should go up.
The Real-Time Market Profile on page one of the report below contains a summary of other key housing metrics: Price Per Square Foot is $132. Average Days on the Market stands at 94 days. Also, 7% of homes for sale in Wesley Chapel have increased in price, while 49% have decreased in price. Currently, Wesley Chapel has 404 homes listed for sale.
The Market Segments section at the bottom of each page of the report breaks down the trends by price range. Each segment contains roughly 25 of the homes for sale. So find your price range for a more specific look at how the trends are playing out in your market segment.
Before you go, take a few minutes to review the home buying and selling tips and mortgage rate information below.
All over Pasco County, you’ll see construction. The new home boom is especially big around Wesley Chapel.
“We are issuing 300 permits a month in this county. So you can imagine how fast this community is growing,” said Pasco County commissioner Ron Oakley.
Several new communities are popping up, including Epperson with 2,000 houses and eventually, the opening of its Crystal Lagoon.
But with all the new homes, there is the serious need for a fire station.
“There is a gap here, we are in the middle of a big gap. We have Station 13 that is to the west of us. We have Station 26 and 27 that are to the east of us,” said Deputy Fire Chief Andrew Fossa.
Pasco Fire Rescue says its average response time for a call is about 8-10 minutes, but they want it closer to six minutes.
From the Blog:
When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.
Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week.
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year.
A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months.
The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months.
The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year.
This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.
If you are planning to enter the housing market, either as a buyer or a seller, let’s get together to discuss the changes in mortgage interest rates and inventory and what they could mean for you.
First-time homebuyers in Florida who need help buying a home have a place to turn to. The Florida Housing Finance Corporation, known simply as Florida Housing, offers several down payment and closing cost assistance programs to help you buy your first home.
Florida Housing programs are available to first-time homebuyers — or anyone who hasn’t owned and occupied a home in three years. Activity military members, qualified veterans and anyone purchasing in a federally designated targeted area may also be eligible. A “targeted area” is a neighborhood, block or street where 70 percent or more of households earn 80 percent or less of the statewide median income, as determined by the U.S. Department of Housing and Urban Development.
You may have heard that spring and summer are the top home-selling seasons, and that fall is as dead as those leaves piling up on your lawn. But don’t be fooled.
“Fall is actually a great time to sell your home,” says real estate agent Carola Encarnacion of DJK Residential in New York City. “There’s less competition, and the market is still very active.”
So if your house is on the market right now, take heart! And heed what many experts say is the one best thing you can do to reel in buyers: Give your home an autumn upgrade with some www.
To the uninitiated: Staging is the technique sellers use to showcase their home at its best through upgrading furniture and decor. And celebrating all things autumnal is the way to do it successfully now.
To tap into the fall frenzy, here are some staging tips that will help your home exude a cozy ambiance that’ll get those offers rolling in.
October 4, 2018
Mortgage rates inched back a little in this week’s survey, easing 1 basis point to 4.71 percent after hitting a seven year high last week. There is upside risk to mortgage rates as the economy remains very robust and this is reflected in the very recent strength in the fixed income and equities markets.
However, the strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago. With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.
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!