Happy Monday, December 3, 2018
In November 2018, the Wesley Chapel trended neutral. That means neither buyers or sellers had an advantage.
The number of homes sold fell 16% from November 2017 and 7.1% from October 2018. The number of homes for sale rose 18.7% from a year ago, but dropped 5.1% from a month ago. The number of homes under contract declined 14.2% compared to November 2017 and 4.2% compared to October 2018. The Months of Inventory (based on Closed Sales) hit 3.8 months, up 41.4% from November of last year.
The Average Sold Price per Square Footage increased 2.3% compared to October 2018 and 6.5% compared to last year. The Median Sold Price held steady from October 2018. The Average Sold Price decreased by 0.9% during that same period. So based on the 6-month trend, the Average Sold Price and is ” neutral”, but the Median Sold Price trend is “appreciating.”
The Average Days on Market showed an upward trend, rising 8.6% compared to a year ago. The ratio of Sold Price vs. Original List Price came in at 95%, a decrease of 1% from November 2017.
Home Sales (Sold)
In November 2018, 105 homes sold, a drop of 16% compared to November 2017 when 125 sold. That was also 7.1% lower than the 113 sold in October 2018.
Current Inventory of Homes (For Sale)
The total number of homes for sale jumped by 62 units or 18.7% compared to a year ago. The amount of current inventory fell 5.1% compared to a month ago.
Property Under Contract (Pended)
Homes under contract (pending) decreased by 4.2% compared to last month and 14.2% compared to last year.
The Average Sold Price per Square Footage shows the direction of property values. The “mix” of very expensive or very cheap homes sold can skew the Median Sold Price and Average Sold Price. But the Average Sold Price per Square Footage can provide a more normalized indicator of the direction of home values. In November 2018, the Average Sold Price per Square Footage was $132, up 2.3% from $129 in October 2018. That was 6.5% higher than the $124 price in November 2017.
The Days on Market Shows Upward 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 November 2018 was 63 days, up 26% from 50 days last month and 8.6% from 58 days in November of last year.
The Sold/Original List Price Ratio is Falling
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. In November Sold Price vs. Original List Price of 95% was down 1% from last month and last year.
The Average For Sale Price is Neutral
The Average For Sale Price in November 2018 of $353,000 fell 4.3% from $369,000 in November of 2017 and rose 1.4% from $348,000 in October 2018.
The Median Sold Price in November was $298,000, up 2.4% from $291,000 in November of 2017 and the same as last month.
The Average Sold Price is Neutral
The Average Sold Price in November of $321,000 increased 1.9% from $315,000 in November of 2017 and ticked down 0.9% from $324,000 last month.
The Median Sold Price is Appreciating
The Median Sold Price in November was $298,000, up 2.4% from $291,000 in November of 2017 and October 2018.
It’s a Neutral 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 November 2018 Months of Inventory of 3.8 months increased 41.4% compared to last year and 2.7% 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 November 2018 Absorption Rate was 26.6%. This was a 29.5% drop compared to November 2017 and 2.2% decrease compared to October 2018.
Hanukkah : The festival of lights started yesterday and runs through Dec. 10. There are several festive ways to celebrate, including Hanukkah in the City today from 5:30-7:30 at the Sundial (151 Second Ave N, St. Petersburg), with an appearance by Mayor Rick Kriseman, a menorah lighting, a trampoline show, live music, a gelt drop and complimentary potato latkes. Sunday, Let Your Light Shine at St. Petersburg’s Congregation B’nai Israel (300 58th St N). They’ll light the large menorah, sing songs, play dreidel games and have a latke bar .
Boat Parades: There are five, count ‘em five lighted boat parades this weekend, starting Friday with the St. Pete Beach Boat Parade (7701 Boca Ciega Drive); South Pasadena Boat Parade and Party, also on Friday (1600 Pasadena Ave.); the Tarpon Springs Boat Parade Craig Park and Bayou, also on Friday. Saturday, its Boca Ciega Yacht Club’s Gulfport Christmas Boat Parade along Gulfport’s waterfront, and the Island Estates Yacht Club Holiday Boat Parade in Clearwater under the Memorial Causeway to Coachman Park.
Music: Wednesday the Brian Setzer Orchestra play tunes from their latest rocking Christmas album at Clearwater’s Ruth Eckerd Hall ($52.75 – $92.75). Thursday, eight-piece soul band St. Paul and the Broken Bones hit the stage at St. Pete’s Jannus Live($25). Friday, it’s A Very Barry Christmas when Barry Manilow takes the stage at Tampa’s Amalie Arena($16-$246). Saturday, Dust in the Wind rockers Kansas play Ruth Eckerd Hall ($43.75-$160).
Manhattan Transfer-Herb Alpert: Multiple Grammy-award winning vocal harmony group known for their versatile vocals will perform a holiday show with the jazz icon and trumpeter and famed Brasil 66 vocalist Lani Hall at Clearwater’s Capitol Theatre on Saturday ($49-$75). rutheckerdhall.com.
Jane Lynch: A Swingin’ Little Christmas: The Glee comedian delivers Christmas cheer to Tampa’s Straz Center Saturday-Sunday with big band-style renditions of holiday classics ($49.75 and up). strazcenter.org.
The Florida Orchestra: Masterworks: Mozart and Sibelius:Under the direction of Stuart Malina, the Florida Orchestra presents pieces by Mozart, Sibelius and Mussorgsky/Rimsky-Korsakov Friday at the Straz Center, Saturday-Sunday at St. Petersburg’s Palladium Theater. $18-$48. floridaorchestra.org.
Broadway: Tony Award-winning Broadway legend Betty Buckley stars in the new production of Hello Dolly! Tuesday-Sunday at the Straz Center ($60 and up; strazcenter.org) Sunday, the gang’s all here, even the flying monkeys, when the Broadway production of The Wizard of Oz comes to Ruth Eckerd Hall ($35-$150; rutheckerdhall.com).
kids and family
The Family Blessing: Inspired by the Nutcracker, Jal Hinson’s community production follows a young boy who learns to appreciate having a family, and features hundreds of dancers performing a variety of styles. The performance happens Saturday at St. Pete’s Mahaffey Theater. $25-$45. themahaffey.com.
From the Blog:
Here are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You are Paying a Mortgage
There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.
Are you ready to put your housing cost to work for you?
4. It’s Time to Move on With Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
You’re never too old for the American Dream.
Take Rupert and Pat Haller. Since 1974, these high school sweethearts planned to buy a quiet, spacious home, a far cry from the fourth-floor walk-up apartment in Jersey City where they spent most of their lives.
They finally closed on their first home in September, a ranch-style house in Toms River, New Jersey.
“It’s really what we strived to do,” said Rupert, 65. “After 45 years of marriage, we’re both retired, we have a house, and we spend every moment together. I’m very blessed.”
The Hallers represent a tiny but growing sliver of first-time homebuyers in this year’s housing market. The share of homebuyers 55 and older has more than doubled in the last 15 years to 38 percent. And senior first-timers accounted for 9 percent of that share – the highest level since data was first collected in 2003, according to the 2018 Homebuyer Profile report from the National Association of Realtors given to USA TODAY exclusively.
“People are living longer, working longer and have steady income in retirement if they even retire at all, so they feel comfortable taking on a mortgage in their senior years,” says Jessica Lautz, NAR’s managing director of survey research and communications.
It may be a greater supply of homes for sale. It may be price cuts on those homes. Whatever the reason, buyers are coming back to the market, and driving mortgage demand.
Total mortgage application volume increased 5.5 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The week’s results also include an adjustment for the Thanksgiving holiday. Overall volume was still 16 percent lower than a year ago.
Mortgage applications to purchase a home drove the volume, rising 9 percent for the week and 2 percent from a year ago. Purchase volume had been trending lower on an annual basis for several weeks, as home sales weakened. Sales of existing and newly built homes have been falling as rising interest rates and already high prices pushed affordability to the lowest level in a decade.
“The rise in purchase activity was led by conventional purchase applications, which surged almost 12 percent, while government purchases were essentially unchanged over the week,” said Mike Fratantoni, chief economist for the MBA. “This also pushed the average loan size for purchase applications higher, which likely meant there were fewer first-time homebuyers in the market last week.”
Winter is the time of year when most home buyers, like bears, retreat to their own cozy homes and hibernate. So what if you have a house you must sell right now, winter be damned?
Despite what you’ve heard, winter can actually work to a home seller’s advantage. With fewer homes on the market, it’s easier to stand out with some home staging—i.e., a few little tweaks to presentation that make your place shine like that crown jewel you know it can be.
So before you throw up your hands and take a home-selling hiatus, try these home-staging ideas for the winter months to make your house stand out.
November 29, 2018
Mortgage rates stabilized the last couple of months as interest rate sensitive sectors such as new auto and home sales softened the outlook for the economy. Homebuyers pounced on the stability in rates as purchase mortgage applications increased, which indicates that despite higher mortgage rates this year there are buyers on the fence waiting for the right time to buy.
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!
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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!