Happy Monday, August 20, 2018
In July 2018, the Wesely Chapel housing market favored sellers.
The number of homes for sale jumped 12.3% from July 2017 and 2.9% from the previous month. The number of homes sold fell 2.7% from a year ago and 9.3% from a month ago. The number of homes under contract climbed 12.5% compared to June 2018 and 15% compared to July 2017. The Months of Inventory (based on Closed Sales) came in at 2.8 months, up 16.6% from July of last year.
The Average Sold Price per Square Footage stayed the same as in June 2018 and rose 4.1% compared to last year. The Median Sold Price dropped 4.3% from June 2018. The Average Sold Price also declined by 3.2% from last month. So based on the 6-month trend, the Average Sold Price trend is “Neutral” and the Median Sold Price trend is “Depreciating”.
The Average Days on Market showed a downward trend, increasing by 48.6% compared to July 2017. The ratio of Sold Price vs. Original List Price was 97%, the same as July 2017.
Home Sales (Sold)
In July 2018, 142 homes sold, a drop of 2.7% July of 2017 when 146 sold. That was also 19.3% lower than the 176 sales in June 2018.
Current Inventory of Homes (For Sale)
The total number of homes for sale jumped by 43 units or 12.3% compared to a year ago. The number of current inventory rose 2.9% compared to a month ago.
Property Under Contract (Pended)
Homes under contract (pending) increased by 12.5% compared to last month and 15% compared to last year.
The Average Sold Price per Square Footage shows the direction of property values. The “mix” of high-end or low-end homes sold can skew the Median Sold Price and Average Sold Price, so the Average Sold Price per Square Footage can provide a more normalized indicator of the direction of home values. In July 2018, the Average Sold Price per Square Footage was $128, the same as June 2018. That was up 4.1% from $123 in July 2017.
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, while a downward trend indicates a move towards more of a Seller’s market. The DOM for July 2018 was 52, down 3.7% from 54 days last month and up 48.6% from 35 days in July of last year.
The Sold/Original List Price Ratio Remains Steady
The Sold Price vs. Original List Price reveals the average amount that sellers are decreasing 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 held steady at 97%, the same as June 2018 and July 2017.
The Average For Sale Price is Neutral
The Average For Sale Price in July of $371,000 fell 1.6% from $377,000 in July of 2017. It ticked up 0.8% from $368,000 in June 2018.
The Average Sold Price is Neutral
The Average Sold Price in July of $303,000 increased 1% from $300,000 in July of 2017. It dropped 3.2% from $313,000 last month.
The Median Sold Price is Depreciating
The Median Sold Price in July was $270,000, up 1.9% from $265,000 in July of 2017 and down 4.3% from $282,000 in June 2018.
It’s 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 July 2018 Months of Inventory of 2.8 months increased 16.6% compared to last year and 27.6% compared to last month.
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 July 2018 Absorption Rate was 36%. This was a 13.5% decrease compared to July 2017 and 21.8% drop compared to June 2018.
Tampa Bay Buccaneers: The Bucs take on the Detroit Lions in their first pre-season home game at Raymond James Stadium in Tampa on Friday. Tickets vary by game. buccaneers.com.
Monster Jam Triple Threat Series: Competitors challenged to drive speedsters, ATVs and the famous Monster Jam trucks, including Grave Digger, El Toro Loco and Megalodon, roar through Amalie Arena on Saturday ($15-$60). monsterjam.com.
Rodeo Fest: Tampa’s Florida State Fairgrounds transform into the Wild West on Saturday with bull riding, barrel racing, four horse relay racing, tie down roping and mounted shooting. $15, $10 ages 10 and younger. floridastatefair.com.
Music: Thursday, The Show Goes On when rapper Lupe Fiasco hits the stage at the Ritz Ybor ($24.50-$35). Sunday, Stars Align when guitar virtuoso Jeff Beck takes turns headlining with Bad Company’s Paul Rodgers, with special guest Heart’s Ann Wilsonopening, at MidFlorida Credit Union Amphitheatre ($25-$350).
Comedy: SNL stars come to Tampa this weekend, when Cecily Strong, known for her Melania and Ivanka Trump impressions headlines the USF Roundup Comedy Show at the Yuengling Center on Friday. Students get priority admission at 7 p.m. for the free back-to-school showcase; doors open to the public at 7:30. (813) 974-3004.
Bier Fest: Running weekends through Sept. 16, this festival at Busch Gardens in Tampa features more than 100 beers from around the world, German food and festive music. Included with admission, but food/drink additional. buschgardens.com.
The Greatest Showman Sing-a-Long: Feel free to belt out This is Me at this screening 2017 movie at the Tampa Theatre on Saturday. Act fast; this screening was added after Thursday’s sold out. $13, $10 members. tampatheatre.org.
Kids and Family
Pirates, Mermaids, Treasures, Oh My!: An interactive family sea adventure sails into Westfield Countryside Mall in Clearwater today-Sunday, with a pirate ship, movie nights, treasure hunts and crafts. westfield.com/countryside.
From the Blog:
Some are attempting to compare the current housing market to the market leading up to the “boom and bust” that we experienced a decade ago. They look at price appreciation and conclude that we are on a similar trajectory, speeding toward another housing crisis.
However, there is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.
A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.
Today is radically different!
There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up (which is a possibility).
However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.
We will not have a glut of inventory like we did back in 2008 and home values won’t come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).
Anyone who’s ever purchased or sold property knows the real estate industry is a fickle one. Changing demographic makeups, economic conditions, interest rates and other factors play a role in how “good” the market is for a buyer or seller, and in a few short years, prices in any given area can dramatically shift.
Despite the ebbs and flows of local and national real estate markets, there are certain things about the homebuying and selling process that remain constant. We asked a panel of Forbes Real Estate Council members to share their evergreen tips for prospective buyers and sellers that hold true regardless of market conditions. Here is what they had to say:
You gotta know your audience. That’s true anytime you’re selling something, but it’s extra true when you’re selling something that could fetch you hundreds or thousands of dollars more!
That type of money can mean only one thing: You’re selling your house. Hopefully, you’re working with a professional who can advise you on how to maximize your profit.
We’re sharing expert tips from realtors who know what home buyers want. These days, they want smart home tech.
The great news for you is, you can often increase your home’s value by adding a few smart home devices that will set you back less than $1,000 and often less than $100.
Here are six smart home gadgets that home buyers are looking for. Don’t skip No. 3 – it’s the first thing that home buyers see when they’re touring your home!
August 16, 2018
Mortgage rates remained mostly flat over the past week, which has been the dominant theme since late spring.
This stability in borrowing costs comes despite the highest core inflation rates since 2008 and turbulence in the currency markets. Unfortunately, this pause in rates is not leading to increasing home sales.
Purchase mortgage applications trailed year ago levels again last week, and it’s clear in some markets that the combination of ascending home prices, limited affordable inventory and this year’s higher rates are curtailing homebuyer demand.
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 New Year!
Search for Tampa Homes By Neighborhood
Tampa, a beautiful, modern city located on the Gulf Coast of Florida, is bordered by Old Tampa Bay and Hillsborough Bay, which come together to make up Tampa Bay. It offers…
View 3546 homes
Apollo Beach is a vibrant waterfront community, located in Hillsborough County in Tampa, FL. It features over 50 miles of interconnected canals that lead to Tampa Bay and the Gulf…
View 325 homes
Land O’ Lakes, located in Pasco County, is north of downtown Tampa. It’s also part of the Tampa-St. Petersburg-Clearwater, Florida MSA. The population of the area is a little over…
View 468 homes
FishHawk, Hillsborough County’s first “green community”, is made up of a variety of smaller communities located in Lithia, Florida. They including Starling at FishHawk, The Preserve, FishHawk Ranch and FishHawk…
View 215 homes
Lutz, which began as a small train depot on the Tampa North Railroad, now has about 20,000 residents. It was named for W. P. Lutz, who brought the railroad to…
View 424 homes
New Tampa, Tampa Bay’s fastest growing community is located in the northern side of Tampa. New Tampa, well-known for its master-planned communities, features upscale residences surrounded by lakes, lush green…
View 361 homes
The Carrollwood area, about 7 miles northwest of Tampa includes two distinct communities — Carrollwood and Carrollwood Village. Both are located in Hillsborough County. Together, they have a population of…
View 266 homes
Odessa, located in Pasco County started as a community of open spaces that residents used for ranches and horse farms. But in more recent years, it has grown considerably due…
View 271 homes
Brandon is an appealing suburb, east of downtown Tampa, Florida. It offers residents a quieter, family-oriented lifestyle just outside of Tampa’s city center. Over 100,000 people call it home and…
View 311 homes
Riverview, Florida, located in Hillsborough County near Tampa has nearly 80,000 residents. The community saw its population increase close to 500 percent from 2000 to 2010 as new development occurred…
View 703 homes
South Tampa, located on the Interbay Peninsula, includes areas of Tampa south of Kennedy Boulevard. Many of Tampa’s most unique and in-demand neighborhoods, Beach Park, Ballast Point, Bayshore Beautiful, Bayshore…
View 1055 homes
Ruskin, located in Hillsborough County, Florida, near Tampa’s South shore has blossomed since the early 2000’s. It’s population, which doubled from 2000 to 2010 now tops 17,000 residents. Background The…
View 297 homes
Valrico, located east of Tampa, is home to more than 35,000 residents. The population has expanded over 400% since 2000, when only 6,500 residents lived there. The median house or…
View 263 homes
Wesley Chapel, in Pasco County, has been one of Tampa Bay’s fastest growing communities during the past 10 years. Currently, there are over 45,000 residents, 16,000 households and 12,000 families…
View 502 homes
Westchase, founded in 1991, is a luxurious planned community located between Tampa and Clearwaterin Hillsborough County. It has around 22,000 residents and is one of the most affluent subdivisions the…
View 154 homes
Are you seeking a one-of-a-kind luxury home? You’ll discover many remarkable million-dollar-plus properties in the Tampa area. Whether you prefer living on the water with spectacular views, a Championship golf…
View 3772 homes
If you love golf, you’ll love the Tampa Bay area’s challenging and picturesque golf courses set in vibrant and beautiful communities on the Gulf Coast. You can enjoy a daily…
View 6222 homes
Living on the waterfront means a variety of things to different people. Some love the all-the-time access to sunshine, the beach and the ocean. For other it’s about a peaceful…
View 13625 homes
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!