Monthly Market Update - August 2018
In August 2018 over $1.5 billion of residential real estate was sold in Hillsborough, Pasco, and Pinellas. There were 6,876 homes listed for sale (up from the previous month) and currently 14,191 active listings. In August, the total number of home sales combined in Hillsborough, Pasco, and Pinellas counties was 5,849 - an increase month-over-month of 2.8% and year-over-year of 2.3%. Hillsborough county had 2,512 of those sales, Pasco had 1,206, and Pinellas had 2,131.
In the tri-county area, the average home price decreased very slightly by 0.7% month-over-month and rose year-over-year by 4.9%. The average sales price was $270,813 in Hillsborough, $212,577 in Pasco, $288,176 in Pinellas, and $257,189 overall. Hillsborough county saw the biggest drop of a $15,000 decrease month-over-month in average home prices (while the other counties saw increases that offset the overall average). However, that does not mean the market is "softening" or starting to turn down in the county. While we have seen month-over-month decreases two months in a row, it it important to note that we have still had good year-over-year growth in prices throughout 2018, even with the 2017 market increasing as rapidly as it did. Additionally, this time of year is historically slower and not as profitable for the real estate market. However, as the market starts to shift and more inventory becomes available, there is a risk of home prices faltering slightly, so if you are considering selling but waiting until the new year, let's talk about your specific neighborhood and where the numbers indicate the market is going for your home. That being said, buyers should not wait to "beat the market" as interest rates are going up, and the small price drops we may see in the future will be offset by an increase in interest rates. If you are thinking of buying, now is still a good time as inventory tends to stay on the market a little longer in the fall months and there are great assistance programs, low down payment options, and low interest rates making it an affordable time to purchase a home.
Speaking of which, mortgage rates inched higher for the second straight week and are currently hovering around 4.54% (for someone with great credit and utilizing a traditional conventional loan program). This continues the upward trend we have seen since the beginning of the year. According to FreddieMac.com, "It’s important to note that mortgage rates are now up three-quarters of a percentage point from last year and home prices – albeit at a slower pace – are still outrunning rising inflation and incomes." Do not wait and lost your opportunity to buy if you are interested in purchasing your own home! If you're not sure where to start, let me know and I can put you in touch with some great mortgage lenders.
In August 2018, the median time homes were on the market before going under contract was 24 days, up 13.3% from August 2017 and up 18.2% from July 2018. With the end of the summer and homes unlikely to close by school time, August can be a traditionally slower month for real estate, so it is not surprising homes were taking a little longer to sell month-over-month. (The year-over-year increase in time on market indicates just how intense the market was this time last year.) Currently, homes are selling for around 98.1% of their list price (down 0.2% from the previous month), meaning if the home was listed at $250,000, on average it sold for $245,250.
Whether you are thinking of buying or selling, I would love to help guide you through the process. There are a lot of steps to take on either side, and it helps to have a local and knowledgeable Realtor working for you (even if you're buying new construction!).
Remember, real estate is hyper-local and what's happening in your neighborhood could dramatically differ from someone else's. If you;d like a customized analysis of your home's current value or help in deciding whether it's the right time for you personally to buy a home, contact me directly and I'd be happy to provide local, expert advice.
Philippa Main 813.317.5556 PM@YourMainAgent.com Keller Williams Tampa Properties 5020 W Linebaugh Ave #100 Tampa, FL 33618