Happy Monday, April 6, 2020
In March 2020, the Wesley Chapel single-family housing market favored sellers.
Homes For Sale fell 36.7% from March 2019 and 3.7% from February 2020. Homes Sold climbed 7.5% year over year and 14.3% month over month. Homes Under Contract rose 4.2% compared to February 2020 and dropped 4.5% compared to March 2019.
The Months of Inventory based on Closed Sales was 1.8, down 42.4% from March of last year.
The Average Sold Price per Square Footage ticked up 0.8% compared to February 2020 and 4.8% compared to last March. The Median Sold Price increased 1.8% from February of this year. The Average Sold Price jumped 7% during the same time period.
The Average Days on Market rose 2.6% compared to March 2019. The ratio of Sold Price vs. Original List Price of 97% increased 1% compared to March of last year.
Home Sales (Sold)
In March 2020, 144 single-family homes sold in Wesley Chapel. That was a 7.5% rise from 134 in March 2019 and 14.3% increase from the 126 sales in February 2020.
Current Inventory of Homes (For Sale)
In March 2020, 151 single-family homes were listed for sale, 36.7% fewer than in March 2019. Current inventory declined 3.7% compared to February 2020.
Homes Under Contract (Pending)
In March 2020, 148 single-family homes were under contract, an increase of 4.2% from February 2020. That was 4.5% lower than in March 2019.
The Average Sold Price per Square Footage indicates which direction home prices are headed. Median Sold Price and Average Sold Price can sometimes be skewed by outliers that sell for a really high or low price. So the Average Sold Price per Square Footage is a more normalized indicator of home values. The March 2020 Average Sold Price per Square Footage of $132 rose 0.8% from $131 in February 2020 and 4.8% from $126 in March 2020.
The Days on Market Shows Neutral Trend
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 2020 of 78 days decreased 3.7% from 81 days in February of this year. It climbed 2.6% from 76 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 are agreeing to decrease 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. March’s Sold Price vs. Original List Price of 97% ticked up 1% from February 2020 and March 2019.
The Average For Sale Price is Appreciating
The Average For Sale Price in March was $374,000, up 5.4% from $355,000 in March 2019 and down 1.8% from $381,000 in February 2020.
The Average Sold Price is Depreciating
The Average Sold Price in March was $320,000, up 7.4% from $298,000 in March 2019 and 7% from $299,000 in February of this year.
The Median Sold Price is Neutral
The Median Sold Price in March was $286,000, up 2.5% from $279,000 in March of 2019 1.8% from $281,000 in February 2020.
March was a Seller’s 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 March 2020 Months of Inventory based on Closed Sales of 1.8 months dropped 42.4% compared to March 2019 and 14% compared to February 2020.
*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 2020 Absorption Rate based on Closed Sales of 55.4 leaped 69.9% compared to March 2019 and 18.6% compared to February 2019.
From the Blog:
- Expert insights are painting a bright future for housing when the economy bounces back – and it will.
- We may be facing challenging economic times today, but the housing market is poised to help the economy recover, not drag it down.
- Let’s connect to make sure you’re informed and ready when it’s time to make your move.
The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.
One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”
Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:
1. Gain a Competitive Advantage
Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.
2. Accelerate the Homebuying Process
Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.
Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Let’s connect today to get the process started.
Click the graphic above to visit www.teambohannon.com
April 2, 2020
Mortgage rates have drifted down for two weeks in a row and that drop reflects improvements in market liquidity and sentiment. While the market has stabilized relative to prior weeks, homebuyer demand has declined in response to current economic conditions. The good news is that the pending economic stimulus is on the way and will provide support for both consumers and businesses.
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!