Single-family home sales ‘red hot’ in Tampa area
TAMPA — Single-family home sales are “red hot” in the Tampa metro area, jumping 28.5 percent in June, compared to the same month in 2014.
That is nearly triple the national increase of 9.6 percent and ahead of the state, which experienced a 19.6 percent increase in sales.
“If you are trying to buy, it is absolutely red hot right now,” said Barbara Jordan, 2015 president of the Greater Tampa Association of Realtors, Inc. “It is not unusual for a house to have multiple offers in 24 to 48 hours if it’s priced right. I’ve been involved in cases where there are eight offers.”
New listings for single family homes rose 15 percent over last year, according to Florida Realtors, which released its June housing report Wednesday. But houses are selling more quickly, with homes in the $150,000-$200,000 price range staying on the market for a median of just 44 days, 18.5 percent less time than a year ago.
Today’s market bears similarities to the real estate market in 2005 and 2006, before the housing bubble burst, Jordan said.
“The difference now is the lenders. Because of the strong appraisal guidelines, we don’t have that run-away that we had with 2005 and 2006 when people were paying way too much for houses and getting it financed. Nowadays, if it doesn’t appraise for that higher offer, you have to negotiate the price or the buyer has to put more money down.” Buyers won’t get a mortgage to cover more than the appraised value, Jordan said.
With houses selling at warp speed, buyers have to check listings daily and even resort to adding an extra touch, or in some cases, extra cash, said Thomas O’Bryant, Jr., executive director of the Greater Tampa Association of Realtors. Buyers need “patience, patience, patience,” he said.
O’Bryant, himself, is on the hunt for a house and said he’s on house number three, dealing with multiple offers.
Buyers in this metro area are getting an average of 94.6 percent of their original list prices, according to the market report. Statewide, buyers are getting 94.3 percent of their asking price.
O’Bryant said he’s also heard about love letters to sellers from buyers hoping to get that extra edge — letters that appeal to the homeowners’ heart, some including pictures of the family that wants to move in.
“Most of the time, you, as a seller, never even meet the people looking to buy your house. So, if you can have some way to put heart into it, more power to ya. I might do that, myself,” O’Bryant said.
The median sale price for houses in the Tampa-St. Petersburg-Clearwater metropolitan statistical area was $180,000 in June, up 10.9 percent over June 2014, Florida Realtors reports.
Statewide, the median price for a house was $203,500, 10 percent above June 2014, according to the market report. Florida houses valued at $150,000-200,000 are sitting on the market for a median of just 40 days, a 21.6 percent drop in days, compared to a year ago.
Nationally, median home prices climbed 6.5 percent in the last 12 months to $236,400, the highest level reported by the National Association of Realtors not adjusted for inflation.
Home listings, nationally, rose just 0.4 percent over last year and while a six-month supply of homes for sale is considered healthy, the national association reported just a 5.5-month supply available in June.
That’s a lot better than Florida, with a house inventory at 4.6 months, down 17.4 percent from June 2014.
Low inventory typically leads to those multiple offers, O’Bryant said.
Townhouse and condo sales in the metro area are up 21.6 percent over June 2014, with a median sale price of $116,000, up 4.2 percent over last year. Inventory is down 18 percent to 3.9 months, Florida Realtors reports.
In Hillsborough County, closed sales on houses are up 27.4 percent over June 2014 with a median sale price of $206,000, staying on the market for a median of 43 days. Townhouse and condo sales are up 20 percent in Hillsborough County, selling for a median price of $124,000, up 8.3 percent over June 2014 and staying on the market for a median of just 35 days.
In Pinellas County, single family home sales were up 29.5 percent, with homes selling for a median price of $185,000, a 12.8 percent increase over June 2014. The inventory of houses in the market is just 3.9 months, a 17.1 percent decrease over 12 months ago. Houses in the $150,000-200,000 are selling in a median of 44 days, according to the market report.
Sales of townhouses and condos in Pinellas County is up 20.6 percent over June 2014. They are selling for a median of $120,000 in about 62 days.
“June marked the 43rd month in a row — more than 3½ years — that median sales prices rose year-over-year for both single family homes and townhouse-condo properties,” statewide, said Andrew Barber, 2015 Florida Realtors president and a broker with Keller Williams Realty Services in Boca Raton. “Florida’s housing market shows positive momentum with a rising influx of people moving to the Sunshine State and a steadily improving jobs outlook.
The state’s unemployment rate in June was 5.5 percent.
The fast pace is very much about the economy, said Brad O’Connor, a research economist with Florida Realtors. “Jobs are the No. 1 predictor of the housing market,” he said. “If you want to look at the housing market, you look for a greater number of people working” and Florida now has that. “And prices have been rising for a while now, with fewer and fewer underwater houses. That has liberated a lot of people to be able to move again and to consider selling.”
The addition of new condo towers in various parts of the state will help to mitigate the demand, said John Tuccillo, chief economist for Florida Realtor. “And finally, the Federal Reserve will soon be raising interest rates, which will have a dampening effect on demand.”
Information from The Associated Press was used in this report.
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