Happy Monday, February 3, 2020
In January 2020 single-family home sales did not favor sellers or buyers. The market was neutral.
Homes for Sale fell 28.3% from January 2019 and 5.9% from December 2019. Homes Sold dropped 11.8% year over year and 49.3% month over month. Homes Under Contract jumped 85.9% compared to December and 32.6% compared to January 2019. The Months of Inventory based on Closed Sales was 4 monthd, down 18.2% from January 2019.
The Average Sold Price per Square Footage rose 2.3% compared to December 2019 and 6.3% compared January 2019. The Median Sold Price decreased 7.1% from December 2019. The Average Sold Price declined 1.6% during the same time period.
Home Sales (Sold)
In January 2020, 75 single-family homes sold. That showed a drop of 11.8% from the 85 sold in January of 2019. It was 49.3% less than the 148 sales in December 2019.
Current Inventory of Homes (For Sale)
In January 2020, 119 single-family homes were for sale. That was 28.3% more than in January 2019. Current inventory fell 5.9% compared to December 2019.
Homes Under Contract (Pending)
In January 2020, 171 SFHs were under contract, 85.9% more than the 92 in December 2019. That was 32.6% higher than in January 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 January 2020 Average Sold Price per Square Footage of $135 rose 2.3% from $132 in December 2019 and 6.3% from $127 in January of last year.
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 January 2020 was 75 days, up 5.6% from 71 days in December 2019 and 8.7% from 69 days in January 2019.
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. January’s Sold Price vs. Original List Price of 95% ticked down 1% from December 2019 and stayed the same as January a year ago.
The Average For Sale Price is Appreciating
The Average For Sale Price in January was $371,000, up 5.7% from $351,000 in January of 2019 and up 3.3% from $359,000 in December 2019.
The Average Sold Price is Neutral
The Average Sold Price in January was $303,000, up 4.5% from $290,000 in January of 2019 and down 1.6% from $308,000 in December 2019.
The Median Sold Price is Neutral
The Median Sold Price in January was $260,000, up 2% from $255,000 in January of 2019 and down 7.1% from $280,000 in December 2019.
January was a Neutral 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 January 2020 Months of Inventory based on Closed Sales of 4 months dropped 18.2% compared to January 2019 but jumped 83.3% compared to December 2019.
The 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 January 2020 Absorption Rate based on Closed Sales of 24.9 increased 23.2% compared to January of last year and declined 46.3% compared to December 2019.
WESLEY CHAPEL — Forty-year-old J.D. Porter was in high school when his family started talking about a sports-tourism venue.
But the more-than-two-decade-long talks about a tennis stadium, baseball complex, lacrosse and soccer facilities eventually gave way to an indoor sports field house at the family’s Wiregrass Ranch development in Wesley Chapel. Tuesday, Pasco County, private operator RADDSports and construction contractor Ajax Building Corp. previewed the $44 million complex for reporters and community members. Construction is scheduled to finish in July.
“What started with a tennis complex, a failure for whatever reason, turned into something great for the county and the entire region,” said Porter, whose family donated 80-acres for the project.
When completed, the 98,000-square-foot building will be capable of having eight basketball courts or 16 volleyball courts, plus space for cheerleading and other sports, a training room, meeting space, concessions and a kitchen. Outside will be two soccer fields, an event lawn and a stage for concerts. More fields will be built in a second phase.
“It gives us a staple to really move the needle on sports tourism and corporate meetings. It’s another why. Why are people coming here?” said Adam Thomas, director of Pasco County’s tourism agency known as Florida’s Sports Coast.
The field house and adjoining amenities, recently rebranded as the Wiregrass Ranch Sports Campus of Pasco County, are being financed by Pasco County’s tourist tax proceeds. Sarasota-based RADDSports will manage the facility. Adjoining the gymnasium will be 128-room Residence Inn by Marriott to be constructed by Mainsail Development Group. A Fairfield Inn already opened nearby.
“It puts us in such a huge marketing advantage to have 200 hotel rooms within walking distance,” said Richard Blalock, CEO of RADDSports.
The initial event is expected to be a 40-team high school volleyball tournament in September. Pasco Commissioner Mike Moore, who chairs the county’s Tourist Development Council, said the complex already has booked six events that are expected to generate 2,460 hotel room nights.
The construction site has more than 100 workers currently, said Marshall Quarles, Ajax project manager. RADDSports will have about 12 full-time employees plus part-time staff when the facility opens, Blalock said. Already, the company hired former Tampa Bay Rowdies coach Stuart Campbell as its soccer director.
The site sits north and east of the Shops at Wiregrass mall, just north of State Road 56. Much of the fast-growing area remains undeveloped. Porter said the Wiregrass Ranch development is less than 30 percent complete.
Tuesday morning, the piped in music to the staging area included the O’Jays singing For the Love of Money.
The county’s Office of Economic Growth previously estimated about 20 percent of the out of town athletes and their families would stay at the Wiregrass Ranch hotels with the rest staying at other hotels in the vicinity. RADDSports has projected it would produce 27,000 visitor nights annually.
From the Blog:
When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.
1. Gain a Competitive Advantage
Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it 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. In a competitive arena like we have today, 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.
3. Know What You Can Borrow and Afford
Here’s the other thing: if you’re pre-approved, you also have a better sense of your budget, what you can afford, and ultimately how much you’re eligible to borrow for your mortgage. This way, you’re less apt to fall in love with a home that may be out of your reach.
Freddie Mac sets out the advantages of pre-approval in the My Home section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac also describes the ‘4 Cs’ that help determine the amount you’ll be qualified to borrow:
- Capacity: Your current and future ability to make your payments
- Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
- Collateral: The home, or type of home, that you would like to purchase
- Credit: Your history of paying bills and other debts on time
While there are still many additional steps you’ll need to take in the homebuying process, it’s clear why pre-approval is always the best place to begin. It’s your chance to gain the competitive edge you may need if you’re serious about owning a home.
Getting started with pre-approval is a great way to begin the homebuying journey. Let’s get together today to make sure you’re on the fastest path to homeownership.
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If one of the questions you’re asking yourself today is, “Should I sell my house this year?” the current Housing Opportunities and Market Experience (HOME) Survey from the National Association of Realtors® (NAR) should boost your confidence as it relates to the current selling sentiment in the housing market. Even with all the information overload in the media circling around talk of a possible recession, the upcoming 2020 election, and more, Americans feel good about selling a house now. That’s some news to get excited about!
As the graph below shows, as of Q4 2019, 75% of people surveyed indicate they believe now is a good time to sell a home:In the case of those with a yearly salary of $100,000 or more, the results jumped even higher, coming in at an 82% positive sentiment.
When the study divided the outcomes by region, the results still consistently showed Americans feeling good about selling:
- Northeast: 71% positive
- Midwest: 76% positive
- South: 72% positive
- West: 81% positive
In addition to looking at income and region, the report also divided the results by generation, as shown in the graph below:As you can see, many believe that, despite everything going on in the world, it is still a good time to sell a home.
According to NAR, the unsold inventory available today “sits at a 3.0-month supply at the current sales pace,” which is down from a 3.7-month supply in November. The current inventory is half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory. This is good news for sellers, as Lawrence Yun, Chief Economist at NAR, says:
“Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.”
If you’re ready to list your home, you can feel good about the current sentiment in the market. Let’s get together today to determine the best next step when it comes to selling your house this year.
January 30, 2020
This week’s mortgage rates were the second lowest in three years, supporting homebuyer demand and leading to higher refinancing activity. Borrowers who take advantage of these low rates can improve their cash flow by lowering their monthly mortgage payments, giving them more money to spend or save.
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!