The summer heat had the Tampa Bay real estate market sweating in June. Inventory remained at an all time low (only two months of homes were available) and home sales were down month-over-month and year-over-year. Even so, almost $1.7 billion of residential real estate was sold in Hillsborough, Pasco, and Pinellas combined, and 7,034 new listings were introduced to the market. There are currently 13,739 active listings, down from 15,287 this time last year.
In June, the total number of residential home sales combined in Hillsborough, Pasco, and Pinellas counties was 6,036 - a decrease both year-over-year and month-over-month, down 6.7% since May and 6.4% from June 2017. Hillsborough county had 2,570 of those sales, Pasco had 1,314, and Pinellas had 2,152.
In the tri-county area, the average home price increased 4.8% month-over-month and rose year-over-year by 5.8% The average sales price was $298,288 in Hillsborough, $216,682 in Pasco, $301,796 in Pinellas, and $272,255 overall. This is the first time ever that the average sales price in Pinellas reached over $300,000 according to MFRMLS data. All three counties saw healthy increases in sales prices month-over-month, with Hillsborough seeing the biggest average sales price increase of $16,672. Currently, many people are speculating that the market will "correct itself" and they, therefore, expect a drop in housing prices. However, those hoping to see a "bubble burst" leading to prices dropping will most likely be disappointed. Looking at the most recent annual and monthly statistics indicates we are in a healthy real estate market, not one headed for collapse, so do not wait to purchase because you think prices are going to go down, as it is unlikely they will.
In June 2018, the median time homes were on the market before going under contract was 19 days, down 10% from June 2017 and down 19% from May 2018. As has been the case for the past few years, homes that are priced right are moving quickly as there are plenty of buyers ready to purchase. Naturally, homes that are overpriced sit longer and require either price drops or contract negotiations, as even though it is a seller's market, homes that do not appraise for the asking price are rarely purchased above market value. Currently, homes are selling for around 98.3% of their list price (meaning if the home was listed at $250,000, on average it sold for $245,750).
While the amount of inventory currently available is still at only a two month supply (defining this as a strong seller's market), the recent expansion of down payment assistance programs has made it an opportune time for first time buyers to purchase. Currently there is an option to put down only 3% and also get $7,500 towards your down payment and/or closing costs, meaning a $200,000 home could be purchased with as little as $8,500 out of pocket. Buyers can utilize gift money from family or friends as well as qualified withdrawals from a retirement account to help fund their down payment.
Additionally, while mortgage rates have continued to fluctuate, the average rate is currently hovering around the mid 4% (4.55% as of June 28th for a 30 year conventional mortgage according to FreddieMac.com). While this was a very small drop from the end of last month, mortgage rates are still 67 basis points higher than this time a year ago.
Whether you are thinking of buying or selling, now is the time as the hot sellers market makes it ideal for current home owners to list, and the still-low interest rates and small down payment requirements have made it more affordable than ever before to purchase a home.
Remember, real estate is hyper-local and what's happening in your neighborhood could dramatically differ from someone else's. If you're looking for a customized analysis of your home's current value or help in deciding whether it's the right time for you to buy in your dream community, contact me directly and I'd be happy to provide local, expert advice.
Keller Williams Tampa Properties
5020 W Linebaugh Ave #100
Tampa, FL 33618