Happy Monday, October 5, 2020!
The Wesley Chapel Single-Family Housing Market Favored Sellers in September 2020!
Summary of Key Stats Year over Year (YoY) and Month over Month (MoM):
More Detailed Analysis and Commentary
Home Sales (Sold)
In September 2020, 180 single-family homes sold in Wesley Chapel, an increase of 13.9% from the 158 sold in September 2019. Homes sales decreased 12.2% from the 205 sold in August 2020.
Current Inventory of Homes (For Sale)
In September 2020, single-family homes dropped 58.6% or 243 units compared to September 2019. Current housing inventory rose 3.6% compared to August 2020.
Homes Under Contract (Pending)
In September 2020, homes under contract fell 12.4% compared to August 2020. This was 32.8% more pended single-family homes than in September of last year.
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 September 2020 Average Sold Price per Square Footage of $145 rose 11.5% from September 2019 and 3.6% in August 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 September 2020 of 37 days declined 44.8% from 67 days in September 2019. The September DOM decreased 14% from 43 days in August 2020.
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. September 2020’s Sold Price vs. Original List Price of 98% ticked up 2.1% from September of last year. It stayed flat compared to August 2020.
The Average For Sale Price is Neutral
The Average For Sale Price in September was $377,000, up 6.2% from $355,000 in September 2019 and 0.5% from $375,000 in August 2019.
The Average Sold Price is Appreciating
The Average Sold Price in September was $344,000, up 16.6% from $295,000 in September 2019 and 1.5% from $339,000 in August 2020.
The Median Sold Price is Neutral
The Median Sold Price in September was $306,000, up 10.1% from $278,000 in September 2019 but down 1.3% from $310,000 in August 2020.
September 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 September 2020 Months of Inventory based on Closed Sales of 1 month, fell 60.9% compared to last September. It jumped 24.7% compared to this August.
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 September 2020 Absorption Rate based on Closed Sales of 104.7 increased 174.9% compared to September 2019. It dropped 15.2% compared to August 2020.
Video of the Week
From the Blog
In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.
According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, notes:
“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”
When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.
How to Price Your Home
As a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.
Even today, when the advantage tips toward sellers because there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if it isn’t priced just right.
A Trusted Real Estate Professional Will Help
It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional. When you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the home, and that’s what ultimately increases the final sale price.
The key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.
If you’re thinking about listing your house this fall, let’s discuss how to price it right so you can maximize your exposure and your return.
Click the graphic above to visit www.teambohannon.com
October 1, 2020
As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time. We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory and lender capacity.
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.