Hi, this is Lance Mohr with Future Home Realty and I wanted to go over the real estate market statistics for April 2014. And most people have watched these before, but just so you understand these statistics are for single-family homes in Hillsborough County.
Now if you own a home in the Central Pasco County there is like Wesley Chapel, Land O Lakes then I would go off these statistics because they are a little bit more relevant than probably the Pasco statistics because Pasco plays into to affect Zephyrhills, Hudson, and New Port Richey which are a lot slower.
Anyhow, let me just go over this: Most everything looks pretty similar to what it did last month, as you can see right here the active inventory jumped up a little bit by about 29 homes. You have the inventory right here: pending sales jumped up quite a bit from about 3370 to 3566 so that is a pretty good jump. It definitely shows you the marketing is going really well. You have down here under sold, the sold homes in April as you can see jumped up about 100 homes as well. So again things are going really good.
Overall, I think home buyers don’t think the market is as good as it is and I think a lot of home sellers actually think the market is deader than it is, so I would just keep in mind where we are in the market. The inventory is low. You can see right here the inventory has gone down. It was down and in three months. It jumped up to 8 in January, 5-1/2 months went down a little bit in February to 4.87 months. In March it was 3.92 months and in April 3.66 months. Of course keep in mind a stable market is about 6 months of inventory or it is not really a buyer or seller’s market so it definitely is a buyer’s market especially if you are under 200 or 250. But let me just point out one thing that is a little bit not too surprising because I have been talking about it since October of last year but it might surprise a lot of people. If you look right here under the actives and look at what the short sales are doing.
Let’s just take in January. They were 10% of the market and now they are 9% of the market. You are not seeing a huge difference on homes that are pending in January they were 46% of the market. In April, they were 36% of the market. Here is a thing that might surprise a lot of you and I’ve been saying since October this is what was going to happen with what is going on with the Relief Act not getting passed. In January, the amount of short sales that were closed were 12%. In April, just 4 months later it has dropped literally in half down to 6%. You can see what the bank owned did. The bank owned was 23% in January, fluctuated a little bit and now they are about 23% so they pretty much stayed the same. As you can see traditional sales have gone from 64% of all the closings to 71% but it is the short sales that are staggering.
What is going on is a lot of banks are just not telling people they can do short sales and people are going through the whole process and waiting 2, 3, 4, and 6 months and then they are just denying the short sale all in all or they are just being so absurd about what they want it is just not working out. So just keep that in mind if you are doing a short sale you really need to hire someone who knows what the heck they are doing. This is not one of those things you just want to assume every realtor is the same or you can literally pay tens of thousands of dollars more for that mistake.
April 2014 Statistics for Buyers
If you are buying a home, just understand there is a good possibility the bank may reject and have your real estate agent ask a lot of questions:
- Who are the banks?
- How many banks are there?
- How cooperative is the seller?
- Have they gotten their package ready or have they even gotten a short sale package?
There are a lot of things you need to ask up front or your agent should be asking. Again, I know a lot of buyers like to think all real estate agents are the same but believe me it is like anything, they are not.
So we go over to individual statistics over here and as you can see when we are in the $100,000 to $200,000 range you can see how low the inventory is. It is 2.83 months there is very low inventory so if you are looking under $200,000 and you see a home you like, you need to write an offer and a good offer and assuming it is a good valued home, and of course if it is overpriced you are not going to want to make an offer on any house so that answers that question.
As far as homes from $200,000 to $300,000 a little over 4 months of inventory; that is still very low based off of this price range. Keep in mind the 6 months of a stable market is based off an average-priced home which in the Tampa area is around $180,000 so a $200,000 to $300,000 home those are above average and they have a very low inventory level. The same thing with $300,000 to $500,000 and the same thing with over $500,000; I mean you can’t look at this and say okay well the homes $385,000 in the inventory level is 5.71 months. If a home is at that value it is almost twice the market value of an average home but still the inventory level is less. So just keep that in mind when you are a buyer.
April’s Statistics for Sellers
When you are a seller again, you just have to get everything done. Buyers right now in today’s market are very, very fickle. They are just not wanting to go in and some of them just don’t have the money to go in and start putting a bunch of money into a home in interior and exterior paint, redoing kitchen cabinets or countertops, redoing floors, redoing fixtures. You really need to spend a little money up front and get this done. I would personally hire an interior decorator to make sure all the colors flow and match well.
April 2014 Conclusion
So that is really where we are in the market. If anybody has any questions please don’t hesitate to give me a call. You can email me on this information right here. Here are some more of my websites. It’s not really coming through that good but you can always go on my home buyer website and do a webinar and go to tbbuyerwebinar.com. If you are looking at selling a home you can go to the free seller webinar. They are done twice per week at tbsellerwebinar.com. TB stands for Tampa Bay.
Alright have a great day. Thank you. If you have any questions let me know. Please like my webpage if you go on there and have a great day. Thank you.