Happy Monday, June 3, 2019
In May 2019, the single-family housing market favored Sellers.
For sale listings climbed 17.4% from May 2018 and 3.5% from April 2019. Homes sold dropped 18% year over year but jumped 11.1% month over month. Under contract listings rose 13% compared to April and 9.6% compared to May 2018.
Months of Inventory was 2.7 months, up 41.8% from the previous May.
The Average Sold Price per Square Footage increased 0.8% compared to April and stayed flat compared to last May. The Median Sold Price decreased 2.4% from April. The Average Sold Price ticked up 1% from April.
The Average Days on Market jumped 14.5% compared to May 2018, while he ratio of Sold Price vs. Original List Price fell 1% compared to last May to 96%.
Home Sales Homes (Sold)
In May 2019, 150 single-family homes sold in Wesley Chapel, an 18% decline from 183 in May of 2018. Sales rose 11.1% from the 135 sales in April 2019.
Current Inventory of Homes (For Sale)
In May 2019, 61 more homes were listed for sale than in May 2018. That’s a leap of 17.4%. For sale listings climbed 3.5% compared to April 2019.
Homes Under Contract (Pending)
In May 2019, homes under contract increased 13% compared to April 2019, as 182 properties were pending. That was 9.6% higher than in May 2018.
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 May 2019 Average Sold Price per Square Footage of $130 ticked up 0.8% from $129 in April. It held steady from May 2018.
The Days on Market Shows a 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 May 2019 was 71, up 6%from 67 days from April and 14.5% from 62 days in May 2018.
The Sold/Original List Price Ratio is Rising
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. This month Sold Price vs. Original List Price of 96% is the same as April and down 1% from May of last year.
The Average For Sale Price is Neutral
The Average For Sale Price in May was $355,000, down 8.7% from $389,000 in May of 2018 and down 0.3% from $356,000 in April 2019.
The Average Sold Price is Neutral
The Average Sold Price in May was $300,000, down 5.4% from $317,000 in May of 2018 and up 1% from $297,000 in April 2019.
The Median Sold Price is Neutral
The Median Sold Price in May was $280,000, down 3.4% from $290,000 in May of 2018 and down 2.4% from $287,000 in April 2019.
May was a Sellers 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
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
he May 2019 Absorption Rate of 36.5 decreased 30.2% compared to May 2018. It climbed 7.4% compared to April 2019.
Hootie and the Blowfish: Hold my hand, after 10 years apart, the band has reunited and is coming to the MidFlorida Credit Union Amphitheatre in Tampa on Sunday ($29.50-$129.50).
Tax-free shopping: Stock up on hurricane supplies, the Disaster Preparedness Tax Free Holiday continues through Thursday for things like batteries, coolers, radios and generators. Find a list of approved items at floridarevenue.com/disasterprep.
Music: Parody king “Weird Al” Yankovic brings his accordion to Ruth Eckerd Hall on Wednesday ($49 and up). Rapper Mod Sun will perform his pop-punky singles at the Orpheum in Ybor on Thursday ($25). On Friday, death metal group Nightmarer brings their “Devastation on the Nation” tour to the Orpheum ($25), the same night Kurt Travis, former lead vocalist for Dance Gavin Dance, brings his solo act to the Crowbar in Ybor ($15). Grammy-nominated world-renowned guitarist Yngwie Malmsteen performs at Clearwater’s Bilheimer Capitol Theatre on Saturday ($30 and up). Nate Najar and Adrian Cunningham return to romp through their favorite swing selections at the Palladium in St. Petersburg on Friday ($22-$28), the same night Grammy winner Steve Earle returns with his group The Dukes to the Capitol. ($34.50-$69.50).
Come From Away: The hit Broadway musical opens at the Straz Center in Tampa Tuesday through Sunday. It’s based on the true, inspiring story of the tiny town of Gander, Newfoundland, which in the aftermath of 9/11 welcomed more than 7,000 stranded travelers when airplanes were grounded. ($51 and up). strazcenter.org.
Comedy: Nineties icon Pauly Shore performs at the Improv in Centro Ybor on Wednesday ($25), and Big Jay Oakerson, host of the The Bonfire, the first live weekly show for Comedy Central on SiriusXM radio, performs there Thursday through Saturday. ($15-$17). improvtampa.com
Moon Bay opens: Ever wanted to pet a jellyfish? The Florida Aquarium on Saturday is opening its newest attraction, Moon Bay, a touch tank in the first-floor lobby full of translucent moon jellies, named for their moon-like circular bells. Admission is $23-$31. flaquarium.org.
KIDS AND FAMILY
Children’s Board Free Tuesday: The Glazer Children’s Museum and the Children’s Board of Hillsborough County join for this event offering free admission from noon to 6 p.m. Tuesday. 110 W Gasparilla Plaza, Tampa.
Juneteenth Community Street Festival: Main Street will be closed to traffic from Howard to Rome in Tampa on Saturday for a community gathering to commemorate the abolishment of slavery. With live music, face painting, step shows, bounce houses and vendors. Free.
MORE TO EXPLORe
Now that school is out, you can find plenty of family activities at tampabay.com/thingstodo.
There have been many headlines decrying an “affordability crisis” in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.
On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index…
“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”
Their methodology states:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”
So, the higher the index, the more affordable it is to purchase a home. Here is a graph of the index going back to 1990:
It is true that the index is lower today than any year from 2009 to 2017. However, we must realize the main reason homes were more affordable. That period of time immediately followed a housing crash and there were large numbers of distressed properties (foreclosures and short sales). Those properties were sold at large discounts.
Today, the index is higher than any year from 1990 to 2008. Based on historic home affordability data, that means homes are more affordable right now than any other time besides the time following the housing crisis.
With mortgage rates remaining low and wages finally increasing, we can see that it is MORE AFFORDABLE to purchase a home today than it was last year!
With wages increasing, price appreciation moderating, and mortgage rates remaining near all-time lows, purchasing a home is a great move based on historic affordability numbers.
Click the graphic above to visit www.teambohannon.com
May 30, 2019
While economic data points to continued strength, financial sentiment is weakening with the spread between the 10-year and the 3-month Treasury bill narrowing as fears of the impact of the trade war with China grow. Lower rates should, however, give a boost to the housing market, which has been on the upswing with both existing and new home sales picking up recently.
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!