Have you been waiting for the right moment to sell? We are currently experiencing a strong demand but very low inventory of homes available for sale. The combination of low supply, high demand and low interest rates is creating a seller’s market like we haven’t seen for several years.
Right now might be the best time to get the highest price possible. To find out how you can benefit from this seller’s market, contact Team Bohannon at 813-377-4455, read about or selling system, or visit InstantMarketAnalysis to find out what your home is worth.
Wow! What a difference a year makes. The Wesley Chapel real estate market continues to build momentum. Historically low interest rates and improving economic conditions have spurred demand. Low prices have caught the attention of home buyers and investors.
At the same time, we have seen fewer foreclosures, fewer short sales and fewer new construction options. The data shows 34% fewer homes were for sale in March compared to March of last year.
The market has transitioned from a buyer’s market to a seller’s market. A 6 month supply of homes for sale is the real estate industry’s benchmark for a market equilibrium wherein neither the seller nor the buyer has the edge in pricing. Based upon the number of available homes and the rate of sales, Wesley Chapel now has just a 2 month supply.
Well priced homes are moving quickly and hot properties often have multiple offers. The average home in Wesley Chapel is on the market for 76 days before going under contract. The average home sells 1.8% under the listing price, though some have multiple reductions of listing prices.
There were 108 home sales in March, up 22.7% from 88 in March of 2012 and 40.3% higher than the 77 sales in February. We have also seen an increase in prices, as the Median Sales Price in March was $165,500, up 26.8% from March of 2012; and the average price $175,933, up 7.7% from $163,322 the previous March.
Is the rebound real? Is this pace sustainable? Time will tell, but it looks like 2013 could be a banner year for the Wesley Chapel real estate market.
Taking a hit on your credit is bad enough, but did you know that you almost had to pay income tax on the bank’s loss? As part of the fiscal cliff negotiations, the Mortgage Forgiveness Debt Relief Act (HR3648) was given a one year extension through 2013. Homeowners who sell their primary residence in a short sale will not have the added burden of having to pay taxes on the uncollected debt. This extension is critical to underwater homeowners, who owe more for their home than it is worth and seek to avoid foreclosure.
Since the passage of HR3648, eligible homeowners still report the canceled debt as income, but they also are granted exclusion to write off the income. The write off only applies to forgiven debt on primary residences and canceled debt up to $2,000,000. If you acquired a home equity line of credit (HELOC) after closing that was not used to improve the property, then forgiveness of that loan may be subject to tax.
Bottom line: Tampa Bay homeowners considering a short sale should act now. A short sale may take 3-10 months to complete, and you must close prior to the end of 2013. There is no guarantee that the Mortgage Forgiveness Debt Relief Act will be extended once again. Please consult a qualified tax professional for details, as not all mortgage debt is subject to this benefit. To speak with a Realtor who has over 200 short sales approved by lenders, call Dale Bohannon at 813-377-4455.
The September S&P/Case-Shiller Home Price Index was released last week. The 20-city composite index posted a 3% increase on a year-over-year basis.
According to Case-Shiller, home prices in the Tampa Bay area were up 5.93% compared to twelve months ago.
Tampa Bay home values have increased 9% from the bottom. However, Tampa home prices are still down 43% from the peak of the housing bubble.
The monthly report, published with a 3 month lag, uses data on single-family home re-sale pairs (same home sales over time). The Case-Shiller study has collected and analyzed home sales in the Tampa-St Pete-Clearwater MSA for over 20 years. The Case-Shiller numbers often diverge from the leading federal index, the OFHEO House Price Index, which also uses the same-home sales method (repeat-valuations framework) to measure home price fluctuations in tha Tampa Bay area. For discussion of how these indexes differ, see: “A Note on the Differences between the OFHEO and S&P/Case-Shiller House Price Indexes”.
Thinking about buying or selling? Instead of hope and theories, call the Bohannons for market data and business systems to evaluate the variables that influence the price of a home.
As listing agents for REOs, and as a real estate agents who carry traditional listings in the Tampa Bay market, we are seeing something new. Nearly every new listing brings in bids from real estate investors. We are not just talking about local fix and flip investors…but rather hedge funds looking to buy and hold. While some bids are low, we have seen hedge funds win bidding wars in many cases. Hedge funds often bid against eachother on the same properties. We have even had cases of the same hedge fund bidding against itself, though the offers came via different LLCs and different agents.
The record number of real estate investors is driving up prices. Local investors and institutional investors seem to favor newer, single family homes priced below $200,000. The funds are not just focusing on bank owned foreclosures (REOs), but they also bid on short sales and traditional sales. These investors are paying cash to buy single family homes, then offering the homes for lease.
For example, we had a recent listing in Wesley Chapel that received multiple offers. One of the offers was a cash offer from a subsidiary of the Blackstone Group. Blackstone did not require financing, appraisals nor inspections. Blackstone would allow the seller to pick the closing date. They even offered to lease the home back to the sellers while the sellers were waiting for their new home to be built. How can a traditional home buyer compete with the likes of Blackstone?
Waiting for a bargain? That ship may have sailed..at least for now. Low inventory levels, low days-on-market and price increases throughout the Tampa Bay region indicate that we now have a seller’s market. The combination of low interest rates, low prices and fear of missing the bottom has spurred fence-sitters to act.
We have also seen record number of real estate investors driving up prices. Both local investors and institutional investors have been bidding on single family homes. Hedge funds have been buying bank owned properties, short sales and tradition listings. In addition, bulk buyers have been scooping up foreclosed properties directly from banks and bypassing the MLS. These investors are paying cash to buy single family homes, then offering the homes for lease.
For example, we had a recent listing in Wesley Chapel that received multiple offers. One of the offers was a cash offer from a subsidiary of the Blackstone Group. Blackstone did not require financing, appraisals or inspections. Blackstone would allow the seller to pick the closing date. They even offered to lease the home back to the sellers while the sellers were waiting for their new home to be built. How can a traditional home buyer compete with the likes of Blackstone?
Will Tampa’s real estate market recovery last? As long as we have #1) the Fed launching endless rounds ‘QE’ stimulus to drive down interest rates; #2) real estate investors on the prowl; #3) employment continuing to improve, and #4) shadow inventory that remains in the shadows, then we should stay in a seller’s market.
High mortgage default rates could still create another round of price declines. As more bank owned foreclosures hit the market, supposely late in 2013, the tales could be turned. Check out these execlent charts from Calculated Risk that show defaults by loan type.