Happy Monday, April 1, 2019
In March 2019, 29.3% fewer single-family homes sold in Wesley Chapel than in March 2018 and 5.1% fewer sold than in February 2019. The number of homes for sale jumped 16.2% in March 2019 compared to March 2018, but fell 2.9% from February 2019. Homes under contract climbed 23.9% compared to last month but ticked down 0.6% compared to the previous March. The Months of Inventory came in at 3.6 months, a 64.6% increase from March 2018.
The Average Sold Price per Square Footage dipped 2.3% compared to last month and 3.1% compared to last year. The Median Sold Price decreased 10% from February 2019. The Average Sold Price dropped 11.1% from last month.
The Average Days on Market rose 25.9% compared to March 2018. The ratio of Sold Price vs. Original List Price was 95%, a decrease of 2.1% compared to last March.
Current Inventory of Homes (For Sale)
In March 2019, 55 or 16.2% more homes were for sale than in March 2018. That was 2.9% fewer than in February 2019.
Homes Under Contract (Pending)
Homes under contract increased 23.9% in March 2019 compared to February 2019 but fell 0.6% compared to March a year ago.
The Average Sold Price per Square Footage indicates the direction of homes values. The ‘mix’ of high or low-end properties in the market can sometimes skew the Median Sold Price and Average Sold Price. So the Average Sold Price per Square Footage is a more normalized indicator on the trend of property values. The March 2019 Average Sold Price per Square Footage dropped 2.3% from $128 last month to $125 in March 2019. It declined 3.1% from $129 in March of 2018.
The average Days on Market (DOM) shows how many days the average home 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 March 2019 of 73 days dropped 7.6% from 79 days last month but rose 25.9% from 58 days in March of last year.
The Sold/Original List Price Ratio Remains Steady
The Sold Price vs. Original List Price reveals the average amount that sellers agree to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. In March 2019 Sold Price vs. Original List Price came in at 95%, a decrease of 1% from last month and 2.1% from March 2018.
The Average For Sale Price is Appreciating
The Average For Sale Price in March was $356,000, down 5.3% from $376,000 in March of 2018 and up 0.6% from $354,000 last month.
The Average Sold Price is Depreciating
The Average Sold Price in March was $289,000, down 5.9% from $307,000 in March of 2018 and down 11.1% from $325,000 last month.
The Median Sold Price is Neutral
The Median Sold Price in March was $270,000, down 4.6% from $283,000 in March of 2018 and down 10% from $300,000 last month.
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 March 2019 Months of Inventory increase 64.6% to 3.6 months compared to March 2018. It was up 2.9% compared to February 2019.
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 March 2019 Absorption Rate fell 39.2% to 28.1 compared to last March. It dipped 2.1% compared to last month.
Already beset with crowding and continuing growth, the Pasco County School Board on Tuesday agreed to buy a 104-acre site for a future school to handle the expected student increase.
With no comment, the board approved a contract for $20,000 per acre at the corner of Curley Road and Kiefer Road, in the bustling Wesley Chapel area. The site would house either a high school or K-8 campus.
The location fits with the county’s “Connected City” plan, anticipated to bring nearly 100,000 new residents to the east county corridor. District officials noted the site sits directly south of future phases of the Epperson Ranch subdivision, and just south of the planned Mirada community.
It’s an area that has grappled with growth for several years. Even with the opening of the Cypress Creek Middle-High campus a year ago, all high schools east of Interstate 75 are at 95 percent of capacity or higher. The same is true for all but one of the middle schools in the region.
The district has a new middle school building in the works for the Cypress Creek campus, to further ease crowding at the other schools. But as long as development continues there, more new schools will be needed.
Charter school developers also have been eyeing the area, with one opening last fall and more expected.
There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.
The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.
For a homeowner who purchased their home 30 years ago, they have gained nearly $250,000 in equity with 70% coming from price increases. The full results can be seen in the chart below.
According to the Home Price Expectation Survey, a family who purchased a median priced home this January can expect to gain more than $42,000 over the next five years simply from price appreciation alone.
Your home is one of the only investments you can live inside as you pay it off over time. If you are ready to use your housing costs to build wealth, let’s get together to discuss how to make your dream a reality.
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The spring housing market is off to the races! The inventory of homes for sale is increasing, buyers are out in force, and interest rates have remained low, peaking the interest of buyers and sellers previously on the fence about making a move.
New research from realtor.com shows that the first week of April is actually the best time to list your house for sale! The report used “trends in median listing prices, views per property on realtor.com, home price drops, median days on market, and number of listings on the market over the last three years,” to determine a ranking for every week of the year.
Listing your home in the first week of April contributes 14x more property views, 5% less competition from other home sellers, and results in the home being sold 6 days faster!
Below is a graph indicating the average score for each month of the year.
It should come as no surprise that April and May dominate as the top months to sell. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, often leading to bidding wars.
However, there is one caveat worth mentioning. When broken down by metro, realtor.com noticed that while warmer climates share an overall trend, they have different top sales months. The best month to get the most exposure in Miami, FL, for instance, is August, while in Phoenix, AZ, June leads the charge.
If you’re thinking of selling your home this year, the time to list is NOW! According to the National Association of Realtors, 41% of homes sold last month were on the market for less than 30 days! If you list now, you’ll have a really good chance to sell in April or May, setting yourself up for the most exposure!
Let’s get together to discuss the market conditions in our area to get you the most exposure to the buyers ready and willing to make a move!
March 28, 2019
The Federal Reserve’s concern about the prospects for slowing economic growth caused investor jitters to drive down mortgage rates by the largest amount in over ten years. Despite negative outlooks by some, the economy continues to churn out jobs, which is great for housing demand. We have recently seen home sales start to recover and with this week’s rate drop we expect a continued rise in purchase demand.
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 Day!
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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!