Happy Monday, May 4, 2020
In March 2020, the Wesley Chapel single-family housing market favored sellers.
Single-Family Homes for Sale in Wesley Chapel declined 35% from April 2019 and 0.8% from the March 2020. Single-Family Homes Sold decreased 0.7% year over year and 7.5% month over month. Single-Family Homes Under Contract fell 5.3% compared to March of this year and 21% compared to the previous April.
The Months of Inventory based on Closed Sales of 1.9 months dropped 34.3% from April 2019.
The Average Sold Price per Square Footage rose 2.3% compared to March 2020 and 4.7% compared to April 2019. The Median Sold Price decreased 0.4% from March of this year. The Average Sold Price fell 2.5% during the same period.
Home Sales (Sold)
In April 2020, 135 single-family homes sold in Wesley Chapel. That was a decline of 0.7% from the 136 sold in April 2019. It was 7.5% lower than the 146 home sales in March 2020.
Current Inventory of Homes (For Sale)
In April 2020, 35% (or 139) fewer single-family homes were listed for sale compared to April 2019. Current single-family home inventory fell 0.8% compared to March of this year.
Homes Under Contract (Pending)
In April 2020, 124 single-family homes were under contract. That’s 5.3% fewer than in March 2020. April’s pending single-family homes for sale dropped 21% lower than in April 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 April 2020 Average Sold Price per Square Footage of $135 increased 2.3% from $132 in March 2020 and 4.7% from $129 in April 2019.
The Days on Market Shows Downward 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 April 2020 of 64 days decreased 17.9% from 78 days in March 2020 and 4.5% from 67 days in April of last year.
The Sold/Original List Price Ratio Is Rising
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. April’s Sold Price vs. Original List Price of 98% ticked up 1% from March of this year and 2.1% from April of last year.
The Average For Sale Price is Neutral
The Average For Sale Price in April was $378,000, up 6.2% from $356,000 in April 2019 and 1.1% from $374,000 in March of this year.
The Average Sold Price is Neutral
The Average Sold Price in April was $311,000, up 4.7% from $297,000 in April 2019 and down 2.5% from $319,000 in March 2020.
The Median Sold Price is Neutral
The Median Sold Price in April was $284,000, down 1.7% from $289,000 in April 2019 and 0.4% from $285,000 in March 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 April 2020 Months of Inventory based on Closed Sales of 1.9 months dropped 34.3% compared to April 2019 and rose 5.6% compared to March 2020.
April 2020 was a Seller’s market.
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 April 2020 Absorption Rate based on Closed Sales of 52.3 jumped 52.5% compared to last April and fell 6.9% compared to this March.
Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime, the real estate industry’s leading showing management technology provider, buyers have started to reappear over the last several weeks. In the latest report, they revealed:
“The March ShowingTime Showing Index® recorded the first nationwide drop in showing traffic in eight months as communities responded to COVID-19. Early April data show signs of an upswing, however.”
Why would people be setting appointments to look at prospective homes when the process of purchasing a home has become more difficult with shelter-in-place orders throughout the country?
Here are three reasons for this uptick in activity:
1. Some people need to move. Whether because of a death in the family, a new birth, divorce, financial hardship, or a job transfer, some families need to make a move as quickly as possible.
2. Real estate agents across the country have become very innovative, utilizing technology that allows purchasers to virtually:
- View homes
- Meet with mortgage professionals
- Consult with their agent throughout the process
All of this can happen within the required safety protocols, so real estate professionals are continuing to help families make important moves.
3. Buyers understand that mortgage rates are a key component when determining their monthly mortgage payments. Mortgage interest rates are very close to all-time lows and afford today’s purchaser the opportunity to save tens of thousands of dollars over the lifetime of the loan.
Many families have decided not to postpone their plans to purchase a home, even in these difficult times. If you need to make a move, let’s connect today so you have a trusted advisor to safely and professionally guide you through the process.
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With the release of the latest Economic Pulse Flash Survey from the National Association of Realtors (NAR), results show that people selling their houses today are holding strong on price. According to the most recent data, 74% of real estate agents noted that sellers are not dropping listing prices to attract more buyers.
Lawrence Yun, Chief Economist at NAR, noted:
“The housing market faced an inventory shortage before the pandemic. Given that there are even fewer new listings during the pandemic, home sellers are taking a calm approach and appear unwilling to lower prices to attract buyers during the temporary disruptions to the economy.”
This inventory shortage, which spread widely throughout the housing market going into today’s economic slowdown, created an environment where there were not enough homes for sale for those who wanted to buy them. With that backdrop setting the stage, Yun also notes:
“With the current quarantine recommendations in place, fewer sellers are listing homes, which will limit buyer choices.”
So, with buyer choices already limited going into this season, and more sellers removing listings today, if you’ve been thinking about listing your house, it’s a great time to do so. Many others in your neighborhood may be waiting to make a move or removing their listings, so staying on the market – or jumping into it – could work to your advantage.
Buyers today are serious ones, and with prices holding steady in this low-inventory market, you can feel confident about selling today. Embracing the process virtually, where available, could help your house hit the top of an eager buyer’s list. While your neighbors miss out on this opportunistic time, you don’t have to.
If buyer choices are limited in your neighborhood, selling now may help your listing rise to the top of the pool. Let’s connect today to make sure you have the expert help you need to succeed in the selling process.
April 30, 2020
The size and depth of the secondary mortgage market is helping to keep rates at record lows. These low rates are driving higher refinance activity and have modestly helped improve purchase demand from their extremely low levels in mid-April. While many people are benefitting from low mortgage rates, it’s important to remember that not all people are able to take advantage of them given the current pandemic.
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!