Single Family Home Key Indicators
Median Sales Price ⬆️ 9.0% to $278,000*
Closed Sales are ⬇️ 6.5%*
New Listings are ⬇️ 15.5%*
In the last market update, we discussed how although the amount of sales are down from previous years, the value of the homes sold was substantially higher. Let’s look at some of the key driving forces that are influencing the market today; what is driving this low inventory, the increase in values in the Tampa Bay, and why some communities are seeing growth in these areas at much higher rates than the rest of the country.
*figures are a comparison of August 2018 to August 2019
Growth By the Numbers
We all know that the sunshine state attracts many transplants from other parts of the country, but previous census data shows it’s much more than just retirees. From July 1, 2017, to July 1, 2018, Florida had a growth in net domestic migration of 132,602 residents, this level of growth was the highest in the United States. Since 2010, Florida has gained a total of 1,160,387 new residents from net domestic migration. In overall numeric growth, Florida ranked second in the country with 322,513 new residents last year* with only Texas surpassing. A large majority of those relocating are heading to our most metropolitan areas such as Orlando, Miami, Jacksonville, and of course the Greater Tampa Bay which sees 150 new residents calling the area home every day.
*figure includes births and deaths along with international migration
Why Tampa Bay?
In May, the state released a job report citing that Tampa Bay added 25,300 new private-sector jobs in the last year; creating the third-highest number of jobs among all Florida metro areas. This healthy growth paired with the overall unemployment rate sitting at 2.9% for the Tampa, St. Petersburg, and Clearwater metropolitan areas, creates a need for more housing and indicates a population with greater means to purchase.
Supply and Demand
Not only are we seeing more employed individuals in the area with the means and need to buy, we are seeing better accessibility due to one important key factor - historically low mortgage rates. Attractive mortgage rates holding strong under 4% and many millennials entering the home purchasing market, combined with the other factors previously discussed, is translating to more buyers competing for homes. Furthermore, in the areas these buyers are competing in, less homeowners are motivated to sell or leave due to being firmly planted into these great communities. The supply is a hurdle, but slowly homebuilders are responding by planning more developments as we are seeing right now in dense areas like South Tampa and Downtown St. Pete.
We don’t see the market shifting anytime soon, in fact some economists are predicting mortgage rates to be cut 3 more times in the next year! These low rates will continue to attract buyers while many sellers will slowly react to the increased demand. Tight inventory conditions, especially in the golden range of $150,000 to $350,000 are going to continue giving sellers power in their pricing. Individual buyers will be competing with each other for this inventory, along with investors flocking to our area to buy remaining inventories in those price points. Ultimately, now is the time to be proactive. Real estate is hyper local, these figures and statistics directly relate to Tampa Bay, but these numbers can be dramatically different when you analyze specific cities by neighborhoods and even blocks.
Owners considering selling their properties should be working with their agent to properly time when to list by taking a complete market analysis of these hyper localized figures. Buyers should be working with their agent and mortgage consultant to plan the best time to buy in their price point and preferred area. Entering those markets at the best time with the best tools and plan is key to giving you ultimate negotiating power. If you are interested in knowing your neighborhood specifics, let us know today by calling 727-314-6161 or emailing firstname.lastname@example.org.
To read the full August report, click here.