Happy Monday, March 2, 2020
In February 2020, the Wesley Chapel single-family housing market favored sellers.
Homes for Sale fell 30.7% from February 2019 and 6.3% from January 2020. Homes Sold declined 3.4% year over year but climbed 32.9% month over month. Homes Under Contract dropped 7.5% compared to January 2020 but rose 15.6% compared to the previous February.
The Months of Inventory based on Closed Sales was 2.5 months, down 28.7% from February 2019. The Average Sold Price per Square Footage fell 5.1% compared to January of this year but ticked up 0.8% compared to February of last year. The Median Sold Price increased 3.3% from January 2019. The Average Sold Price decreased 5.2% during the same time period.
The Average Days on Market rose 2.5% compared to February 2019. The ratio of Sold Price vs. Original List Price was 96%, the same as February 2019.
Home Sales (Sold)
In February 2020, 113 single-family homes sold in Wesley Chapel, a 3.4% drop from the 117 sold in February of 2019. That was 32.9% higher than the 85 sales in January 2020.
Current Inventory of Homes (For Sale)
In February 2020, 125 fewer homes were for sale compared to February of last year, 30.7% drop. The current inventory of single-family homes in Wesley Chapel fell 6.3% compared to January of this year.
Homes Under Contract (Pending)
Homes under contract decreased 7.5% in February. Only 148 were pending versus 160 in January 2020. A year-over-year comparison shows that pending homes for sale jumped 15.6%.
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 February 2020 Average Sold Price per Square Footage of $129 dropped 5.1% from $136 in January 2020 but rose 0.8% from $128 in February of last year.
The Days on Market Shows 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 February 2020 of 81 days decreased 2.4% from 83 days in January fo this year. It climbed 2.5% from 79 days in February 2019.
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. February’s Sold Price vs. Original List Price of 96% increased 1.1% % from January 2020 but stayed flat compared to February 2019.
The Average For Sale Price is Appreciating
The Average For Sale Price in February was $377,000, up 6.5% from $354,000 in February 2019 and 1.6% from $371,000 in January 2020.
The Average Sold Price is Depreciating
The Average Sold Price in February was $294,000, down 9.5% from $325,000 in February 2019 and 5.2% from $310,000 in January 2020.
The Median Sold Price is Neutral
The Median Sold Price in February was $279,000, down 7% from $300,000 in February 2019 but up 3.3% from $270,000 in January 2020.
February 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 February 2020 Months of Inventory based on Closed Sales of 2.5 months fell 28.7% compared to last February and 28.2% compared to this January.
*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 February 2020 Absorption Rate based on Closed Sales of 40.1 jumped 39.7% compared to February 2019 and 42.1% compared to January 2020.
WESLEY CHAPEL, Fla. – In downtown Tampa, you can stroll the Riverwalk. In downtown St. Pete, you can dine along Beach Drive. Soon in Wesley Chapel, you’ll be able to shop, eat, and more.”It’s going to create a downtown for Wesley Chapel, where they don’t have one.”Today, Pasco commissioners approved the economic incentive package, to the tune of $33 million, to create a brand new downtown, to be called Avalon Park Wesley Chapel.The county’s economic growth manager, David Engel, says this will bring a 30-year property tax rebate.
Courtesy Avalon Park Group
“There’s no cost directly to the county,” said Engel.
Located on the north side of State Road 54, the downtown area will include around 2,400 residences and 350,000 square feet of commercial and office space.
Swiss developer Beat Kahli says he wants to build some something reminiscent of Switzerland.
“We want to build a town where you can live, learn, work and play,” Kahli said. “We have a school under construction which will open this August, so the kids can walk or bike to the school. We’re starting commercial development at the end of this year, so we’ll have every need of your daily life satisfied in the community.”
Courtesy Avalon Park Group
Khali says a 10-year plan is in place for the nearly billion-dollar project, but residents can expect to see big changes over the next three years.
“Schools will be completed; it’s our goal to make it the best goal in Tampa Bay. In addition, when it comes to retail stores, within 24 months from now, that’s the goal. You should be able to satisfy all of your basic needs.”
One thing helping homeowners right now is price appreciation, especially in the entry-level market. In the latest Home Price Insights report, CoreLogic reveals how home prices increased by 4% year-over-year and projects prices will rise 5.2% by December 2020.
Why is this good news for the homeowners?
When prices appreciate, homeowners gain equity. In addition, those planning to sell this year, especially in the entry-level market, can potentially earn a substantial profit.
Dr. Frank Nothaft, Chief Economist at CoreLogic, says:
“Moderately priced homes are in high demand and short supply, pushing up values…Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.”
As Dr. Nothaft indicates, the lack of inventory continues to drive home price growth. This means there’s a high demand for homes in this tier of the market, making it a great time to consider using your equity to move up to a bigger or more premium home.
When you upgrade your home, you may be able to find the amenities or features you’ve dreamed of – such as a yard to plant or garden in with your family this spring, or more outdoor space for entertaining this summer. Maybe it’s the master bath you’ve always hoped for, or a garage to finally park your car inside.
Whatever you choose, if you’re moving out of an entry-level house, you’re likely going to be in the driver’s seat as a seller.
If you’d like to own a bigger home, let’s get together to discuss your situation. You may be surprised by the current value of your home and the equity you’ve gained.
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The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in that change. The average 30-year rate in 2019, according to Freddie Mac, was 3.94%. Today that rate is closer to 3.5%.
The Census Bureau also just reported the highest homeownership rate since 2014 for people under 35. This is evidence that owning their own home is becoming more important to Millennials as they reach the age where marriage and children are part of their lives.
According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is strong. That’s not the case, however, with seller demand, which remains weak throughout most of the nation. Here’s a breakdown by state:Demand for housing is high, but supply is extremely low. NAR also just reported that the actual number of homes currently for sale stands at 1.42 million, which is one of the lowest totals in almost three decades. Additionally, the ratio of homes for sale to the number purchased currently stands at 3.1 months of inventory. In a normal market, that number would be nearly double that at 6.0 months of inventory.
What does this mean for buyers and sellers?
Buyers need to remain patient in the search process. At the same time, buyers must be ready to act immediately once they find the right home.
Sellers may not want to wait until spring to put their houses on the market. With demand so high and supply so low, now is the perfect time to sell your house for the greatest dollar value and the least hassle.
The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.
February 27, 2020
Given the recent volatility of the ten-year Treasury yield, it’s not surprising that mortgage rates again have dropped. These low rates combined with high consumer confidence continue to drive home sales upward, a trend that is likely to endure as we enter spring.
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!