I hope you had a wonderful Memorial Day Weekend. Also, I want to thank all the past and current veterans who have served our country.
Today I’m going to present a longer-term view on the Wesley Chapel real estate market. This will help put into perspective how the housing market has progressed over the last three years.
First, let’s look at prices. We will use Median Prices* (see note below about why this is a better metric than average prices). Median Sold Price rose 15% to $264,395 from April of 2015 compared to April of 2017. That represented an increase of $33,895. If you compare the Median Sold Price with the Median For Sale Price, you’ll notice that it is also up 15%.
The Number of Sold Homes climbed 18% from 114 (April 2015) to 134 (April 2017) during the same time period. The Number of Homes for Sale was nearly the same, while the Number of New Properties dropped 3%. This decrease in housing inventory caused the Months Supply of Homes to fall 11% — from 2.3 to 2.1 months. The Average Number of Days a home stayed on the market declined 5% — or 3 days — from 64 to 61 days.
To sum it up, prices and home sales climbed double-digits over the past few years. Combine this with dwindling inventories and faster sale times and you’ll see that now is an opportune time to list and sell your home. This trend should continue throughout the summer. And buyers, even though it’s a seller’s market, amazingly low mortgage rates still make it a great time to buy.
See the charts below for a month-by-month breakdown of these trends.
(MEDIAN SOLD PRICE – Median means “in the middle,” meaning that half of the homes sold above the Median Sold Price and half sold below it. For example, if 5 homes sold in a zip code for $200,000, $250,000, $300,000, $400,000 and $800,000, the Median Price would be the one in the middle. In this case, that would be the $300,000 home. In contrast, average selling price would just be the sum of the selling prices of the 5 homes divided by 5, or $330,000. Many real estate statisticians prefer median price as a better indicator of the “typical” price within an area or zip code. Why? “Outliers” or homes sold at an extremely high or low price — like the $800,000 home in our example — do not affect it as much.)
Super Bowl 55 has been moved to Tampa, the NFL Network reported on Tuesday.
The network reported NFL owners voted unanimously to move the game to Tampa, while Los Angeles will host Super Bowl 56, according to sources.
Super Bowl 55 will tentatively take place February 7, 2021. The game will air on News Channel 8.
“Being awarded Super Bowl 2021 is a testament to our city’s ability to shine on the international stage,” said Mayor Bob Buckhorn. “Tampa does big events as well as anybody in the world and once again we will rise to the occasion.We look forward to working to meet the host requirements over the weeks ahead.”
From the Blog:
People often ask if now is a good time to buy a home, but nobody ever asks when a good time to rent is. Regardless, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau recently released their 2017 first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
As we head into summer, it is a great time to review how the 2017 real estate market is doing so far. Here is what the experts are saying:
Doug Duncan, Fannie Mae Chief Economist
“Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates.”
“Even as more homes come on the market for this traditionally popular sales season, they’re flying off fast, with bidding wars par for the course. Home prices have now surpassed their last peak, and at the entry level, where demand is highest, sellers are firmly in the driver’s seat.”
“I am guessing we will see it get even better… If you are considering moving, it could be a really good time to sell.”
“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month. Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings…for sales to muster a strong gain. Sales will go up as long as inventory does.”
“Despite higher mortgage rates, the potential for home sales increased on an annual basis driven by steady income and job growth, along with a surge in building permits. While it may be a little late for this spring, the increase in building permits is a welcome sign that some relief may be in sight for the inventory shortages that are holding back many markets from realizing their full potential this spring.”
Advice for Buyers:
In the first quarter of 2017, nearly one in five home buyers focused their online searches on properties outside of their current metro area, according to an analysis by Redfin of nearly 1 million users searching for homes across 75 metro areas.
There are not enough “budget-friendly housing” options to make consumers want to stay loyal to their current cities, says Nela Richardson, Redfin’s chief economist. “For many, the only path to homeownership is to pack up and move out.”
So where are these online home searchers looking to relocate to? Redfin cited the following 10 metros as garnering the most out-of-town views (cited along with city where the searchers are most likely to be currently living).
7. Tampa, Fla.
- The percentage of out-of-town shoppers: 52.4%
- Where the most buyers currently live: Washington, D.C.
As we predicted, the 30-year mortgage rate fell 7 basis points this week in a delayed reaction to last week’s sharp drop in Treasury yields. The survey rate stands at 3.95 percent today, a new low for the year.
- 30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an average 0.5 point for the week ending May 25, 2017, down from last week when it averaged 4.02 percent. A year ago at this time, the 30-year FRM averaged 3.64 percent.
- 15-year FRM this week averaged 3.19 percent with an average 0.5 point, down from last week when it averaged 3.27 percent. A year ago at this time, the 15-year FRM averaged 2.89 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.07 percent this week with an average 0.4 point, down from last week when it averaged 3.13 percent. A year ago at this time, the 5-year ARM averaged 2.87 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
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 week!
Team Bohannon, Keller Williams, 813-431-2840
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