Happy Monday, November 2, 2020!
The Wesley Chapel Single-Family Housing Market Favored Sellers in October 2020!
Summary of Key Stats Year over Year (YoY) and Month over Month (MoM):
More Detailed Analysis and Commentary
Home Sales (Sold)
In October 2020, 140 single-family homes sold in Wesley Chapel, 41.4% more than the 99 sold in October 2019. That was 22.7% fewer homes than the 181 sold in September 2020.
Current Inventory of Homes (For Sale)
In October 2020, 224 fewer single-family homes were listed for sale than in October of last year, a 58.9% decline. October inventory fell 9.3% compared to September of this year.
Homes Under Contract (Pending)
In October 2020, homes under contract increased 15% compared to September 2020, as 176 homes were pending versus 153. That was 6.6% higher than in October 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 October 2020 Average Sold Price per Square Footage of $142 dropped 2.1% from $145 in September of this year. It jumped 7.6% from $132 in October of last year.
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 October 2020 was 36 days, down 2.7% from 37 days in September of this year. It plunged 59.6% from 89 days in October of 2019.
The Sold/Original List Price Ratio is Falling
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. October’s Sold Price vs. Original List Price of 94% decreased 4.1% from September 2020 and 1.1% from October 2019.
The Average For Sale Price is Neutral
The Average For Sale Price in October was $401,000, up 13.3% from $354,000 in October 2019 and 6.4% from $377,000 in September 2020.
The Average Sold Price is Neutral
The Average Sold Price in October was $339,000, up 9.7% from $309,000 in October 2019 and down 1.5% from $344,000 in September 2020.
The Median Sold Price is Appreciating
The Median Sold Price in October was $314,000, up 15.9% from $271,000 in October 2019 and 2.6% from $306,000 in September of this year.
October 2020 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 October 2020 Months of Inventory based on Closed Sales of 1.1 months fell 70.3% compared to last October. It climbed 10.5% compared to September of this year. 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 October 2020 Absorption Rate based on Closed Sales of 89.7 leaped 244.1% compared to October 2019. It dropped 14.7% compared to September 2020.
Video of the Week
From the Blog
The number of houses for sale today is significantly lower than the high buyer activity in the current housing market. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
“There is no shortage of hopeful, potential buyers, but inventory is historically low.”
When the demand for homes is higher than what’s available for sale, it’s a great time for homeowners to sell their house. Here are three ways low inventory can help you win if you’re ready to make a move this fall.
1. Higher Prices
With so many more buyers in the market than homes available for sale, homebuyers are frequently entering into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this can definitely work to your advantage, potentially netting you more for your house when you close the deal.
2. Greater Return on Your Investment
Rising prices mean homes are also gaining value, which drives an increase in the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.”
This year-over-year growth in equity gives you the ability to put that money toward a down payment on your next home or to keep it as extra savings.
3. Better Terms
When we’re in a sellers’ market like we are today, you’re in the driver’s seat if you sell your house. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally move into their dream home.
So, is low housing inventory a big deal?
Yes, especially if you want to sell your house at the perfect time. Today’s market gives sellers immense negotiating power. However, it won’t last forever, especially as more sellers return to the housing market next year. If you’re considering selling your house, the best time to do so is now.
If you’re interested in taking advantage of the current sellers’ market, let’s connect today to determine your best move in our local market.
Click the graphic above to visit www.teambohannon.com
October 29, 2020
The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth. Strong purchase demand is helping to lift the construction, manufacturing and transportation industries that build new homes and it is also leading to more consumer spending for owners, who are selling or improving their homes. On the refinance front, many consumers are smartly taking advantage of the ability to lower their monthly payment, which means they can spend, save or pay down debt more so than they have in the past.
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.