Happy Monday, May 6, 2019
In April 2019, the single-family housing market favored Sellers.
Homes for Sale jumped 25.2% from April 2018 but fell 3.4% compared to March 2019. Homes Sold decreased 3.6% year over year but increased 0.7% month over month. Homes under contract rose 6.3% compared to March 2019 but declined 1.2% compared to last April. The Months of Inventory based on Closed Sales came in at 2.9 months. That’s a 26.5% climb from April a year ago.
The Average Sold Price per Square Footage increased 2.4% compared to March 2019 and held steady compared to April 2018. The Median Sold Price rose 2.9% from March, while the Average Sold Price ticked down 0.3% from the previous month.
The Average Days on Market increased 21.8% compared to April 2018. The Ratio of Sold Price vs. Original List Price decreased 1% from last April to 96%.
Home Sales Homes (Sold)
In April 2019, 135 homes sold compared to 140 in April 2018 and 134 in March 2019. That showed a 3.6% drop year over year and 0.7% increase month over month.
Current Inventory of Homes (For Sale)
In April 2019, Homes for Sale climbed 25.2% or 80 units compared to April 2018. The number of for sale homes fell 3.4% compared to the March of this year.
Homes Under Contract (Pending)
Homes Under Contract increased 6.3% in April as 169 homes were pending versus 159 in March. In April 2018, 1.2% more homes were under contract than in April of 2019.
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 April 2019 Average Sold Price per Square Footage climbed 2.4% to $129 compared to March. It stayed flat compared to April 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 April 2019 was 67 days, down 11.8% from 76 days last month but up 21.8% from 55 days in April 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. In April 2019, the Sold Price vs. Original List Price Ratio of 96% was the same as March. It dropped 1% from April 2018.
The Average For Sale Price is Appreciating
The Average For Sale Price in April was $356,000, down 6.8% from $382,000 in April of 2018 and up 0.3% from $355,000 in March 2019.
The Average Sold Price is Neutral
The Average Sold Price in April was $297,000, down 4.2% from $310,000 in April of 2018 and 0.3% from $298,000 in March of this year.
The Median Sold Price is Neutral
The Median Sold Price in April was $287,000, down 0.7% from $289,000 in April of 2018 and up 2.9% from $279,000 in March 2019.
April 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
The April 2019 Absorption Rate declined 23.1% to 34 compared to April 2018. It climbed 4.3% compared to March of this year.
Mother’s Day: Give your mom the gift of your time, and she gets free admission at the Chihuly Collection Saturday and Sunday in St. Petersburg. And all moms get in free at the Tampa Museum of Art on Sunday and free mimosas in their Riverwalk Cafe. 10 a.m.-5 p.m. Sunday. 120 W Gasparilla Plaza.
Free Pops in the Park: The popular picnicking night is back. Enjoy a free show by the Florida Orchestra on Friday at Clearwater’s Coachman Park and on Sunday at Tampa’s Julian B. Lane Riverfront Park. Bring some canned goods for Tampa Bay Harvest. 7:30 p.m. Friday and Sunday.
Anastasia: The Broadway show by celebrated playwright Terrence McNally, set in the twilight of the Russian empire, opens at Tampa’s Straz Center Tuesday through Sunday. $75 and up, but there is a digital lottery for $25 tickets at luckyseat.com/anastasia.
Music: Indie rock singer-songwriter Lucy Dacus plays the Crowbar in Ybor City Tuesday ($12), the same night Bryan Adams cuts like a knife at Al Lang Stadium in St. Petersburg ($29.50-$54.50). Legendary Yes singer Jon Anderson has two shows Wednesday at Clearwater’s Capitol Theatre ($59-$95), the same night rockers Interpol play the Mahaffey in St. Petersburg ($29.50) and sister pop-rock duo Aly and AJ play the Orpheum in Ybor ($25). Australian dance trio Rufus Du Sol had to move their Thursday show from Jannus Live to the Cuban Club due to overwhelming demand ($35). Thrash metal gods Slayer perform along with Lamb of God, Amon Amarth and Cannibal Corpse on Friday at the MidFlorida Credit Union Amphitheatre in Tampa ($25 and up). Country’s Dylan Scott (My Girl) plays the Dallas Bull ($15), and legendary crooner Tom Jones has a sold-out show at Ruth Eckerd Hall, both on Friday. Christian music’s hippest act, Hillsong United, plays the MidFlorida Amphitheatre on Saturday ($22.50). The nostalgic Millennium Tour coming to the Amalie Arena on Saturday brings B2K, Mario, Pretty Ricky, Lloyd, Chingy, Bobby V and the Ying Yang Twins ($49.50 and up).
Movies in the Park: Pack a picnic and enjoy a fusion of jazz, rock and world music by Botomatics, and the Bill Murray favorite, Groundhog Day. 7 p.m. Thursday in St. Petersburg’s Straub Park.
Buyer and Cellar: The absurdist comedy set Barbra Streisand’s infamous basement mall opens Saturday at St. Petersburg’s Freefall Theatre and runs through June 9. $29.50-$52.50.
Avenue Q: The warped puppet comedy is definitely not for kids Friday through May 19 at Largo’s Central Park Performing Arts Center. ($28.50 and up.)
kids and family
Glazer Museum Free Tuesday: The monthly treat of free admission is noon to 6 p.m. on Tuesday at the hands-on museum. glazermuseum.org
More to explore
Find loads of Mother’s Day brunches and free events for Mom at tampabay.com/thingstodo.
Two positive trends have started to emerge that impact the 2019 Spring Housing Market. Mortgage interest rates for a 30-year fixed rate loan have dropped to new lows, right as reports show that wages have increased at their highest rate in decades!
These two factors have helped keep housing affordable despite low supply of houses for sale driving up prices. First American’s Chief Economist, Mark Fleming, explains the impact,
“Ongoing supply shortages remain the main driver of the performance gap as the housing market continues to face an inventory impasse – you can’t buy what’s not for sale.
However, an unexpected affordability surge, driven primarily by lower-than-anticipated mortgage rates, rising wages and favorable demographics, has boosted housing demand.”
Mortgage interest rates had been on the rise for most of 2018 before reaching their peak in November at 4.94%. According to Freddie Mac’s Primary Mortgage Market Survey, interest rates last week came in at 4.20%.
Average hourly earnings grew at an annual rate of 3.2% in March, up substantially from the 2.3% average pace seen over the last 10 years.
These two factors contributed nearly $6,000 worth of additional house-buying power for median households from February to March 2019, according to First American’s research. Fleming is positive about the prolonged impact of lower rates and higher wages.
“We expect rising wages and lower mortgage rates to continue through the spring, boosting housing demand and spurring home sales.”
Low mortgage interest rates have kept housing affordable throughout the country. If you plan on purchasing a home this year, act now while rates are still low!
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So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers.
There are four elements to a quality listing. At the top of the list is access, followed by condition, financing, and price. There are many levels of access that you can provide to your agent so that he or she can show your home.
Here are five levels of access that you can give to buyers, along with a brief description:
- Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
- Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
- Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.
- By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
- Limited Access (example: the home is only available on Mondays or Tuesdays at 2 pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.
With more competition coming to the market this spring, access can make or break your ability to get the price you are looking for, or even sell your house at all.
May 2, 2019
Slightly weaker inflation and labor economic data caused mortgage rates to dip this week. Moving into summer, we expect rates to be about a quarter to half a percentage point lower than where they were last year, which is good news for the housing market. These lower rates combined with solid economic growth, low inflation and rebounding consumer confidence should provide a solid foundation for home sales to continue to improve over the next couple of months.
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!